TSX- and NYSE-listed copper producer Ero Copper has amended its existing senior secured revolving credit facility from $75-million to $150-million and extended the maturity thereof from March 2025 to December 2026.

The amended credit facility, expected to close by December 23, will bear interest on a sliding scale of secured overnight financing rate, plus an applicable margin of 2% to 4% depending on the company’s consolidated leverage ratio.

Commitment fees for the undrawn portion of the amended credit facility will also be based on a sliding scale ranging from 0.45% to 0.9%.

Ero’s pro forma liquidity position as of September 30 is about $510-million, including cash and cash equivalents of about $210-million, short-term investments of about $150-million and $150-million of undrawn availability under the amended credit facility.

Ero, with its primary asset being a 99.6% interest in the Brazilian copper mining company MCSA, has operations in Brazil and corporate headquarters in Vancouver, Canada.

The company is also a 100% owner of the Caraíba operations (formerly known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia State, in Brazil. These operations include the Pilar and Vermelhos underground mines and the Surubim mine and the Tucumã project (formerly known as Boa Esperança) – iron oxide copper/gold project located in Pará, Brazil.

The company also owns 97.6% of NX Gold, which, in turn, owns the Xavantina operations (formerly known as the NX gold mine) – an operating gold and silver mine located in Mato Grosso, Brazil.

"We are pleased to have achieved improved terms on our senior secured revolving credit facility, including a 25 basis point reduction to our applicable margin on drawn funds, reduced standby fees on undrawn commitments and extended maturity to the end of 2026," says CFO Wayne Drier.

The Bank of Montreal acted as administrative agent, joint lead arranger with the Bank of Nova Scotia and sole bookrunner, while the Canadian Imperial Bank of Commerce acted as documentation agent.