The notes will be guaranteed on a senior unsecured basis by the company's 99.6%-owned Mineração Caraíba subsidiary in Brazil.
Ero intends to use the proceeds, together with cash on hand, to repay the outstanding balance under its senior secured revolving credit facility of about $50 million and capital expenditures related to the construction of the Boa Esperanca copper project in Para, Brazil, which is expected to commence in the June quarter subject to board approval.
Upon the successful closing of the notes offering, Ero expects to reduce the size of its senior secured revolving credit facility from $150 million to $75 million.
Ero posted record copper production in 2021 from its MCSA complex in Bahia, Brazil of 45,511 tonnes of copper in concentrate, surpassing its guidance, as did its NX gold mine which produced 37,798 ounces of gold.
Boa Esperanca is intended to produce 27,000tpy of copper for 12 years.
Shares in Ero Copper are trading at C$16.84, valuing the company at C$1.5 billion.