Ero Copper prices $127.2M IPO and secondary offering

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By Ted Liu

Ero Copper Corp. has filed its final prospectus in connection with its proposed initial public offering (IPO) and secondary offering.

Ero Copper will issue 23,282,116 common shares, 10,000,000 common shares from treasury and 13,282,116 common shares by certain selling shareholder by way of secondary offering, at a price of $4.75 per share for aggregate gross proceeds of $110,590,051, with Ero Copper and the selling shareholders receiving gross proceeds of $47,500,000 and $63,090,051, respectively.

The selling shareholders are Brasil Plural Special Situations Fundo de Investimento em Participações Multiestratégia Investimento no Exterior, Spectra II – Fundo de Investimento em Participações, Spectra III Fundo de Investimento em Participações Multiestratégia IE, Ross Beaty, Taylor International Fund Ltd., Heritage Investments Trust, Randal Cowell, 1045373 BC Ltd., 1040350 BC Ltd., and Geoff Burns.

The offering is being managed by a syndicate of underwriters, including BMO Capital Markets and Scotiabank as lead joint bookrunners and Canaccord Genuity Corp., GMP Securities L.P., Numis Securities Limited, PI Financial Corp. and Raymond James Ltd.

Blake, Cassels & Graydon LLP and by Cassels Brock & Blackwell LLP act as legal counsels to Ero Copper and the underwriters respectively.

Ero Copper has granted the underwriters an over-allotment option for an additional 3,492,317 common shares for additional gross proceeds of $16,588,505.75 to Ero Copper.

The offering is expected to close on or about October 19, 2017. The Toronto Stock Exchange has conditionally approved the listing of Ero Copper common shares under the symbol “ERO”.

Upon closing of the offering, Ero Copper will have 71,105,711 common shares issued and outstanding or 74,598,028 common shares issued and outstanding if the over-allotment option is exercised in full.

Ero Copper is a base metals mining company focused on the production and sale of copper from the Vale do Curaçá Property in Brazil, with gold and silver produced and sold as by-products from the Vale do Curaçá Property. The company’s principal business activities since incorporation have been the acquisition of an approximately 99.5% direct interest in Mineração Caraíba S.A. (MCSA) and, indirectly through the acquisition of MCSA, the acquisition of the Vale do Curaçá Property and the Boa Esperança Property, as well as the advancement of the operations of the Vale do Curaçá Property. The Vale do Curaçá Property has been in production since 1979.

photo credit: Ero Copper Corp.