Canada-based Ero Copper has closed $111m (C$152.06m) in bought deal financing by issuing nine million shares at $12.35 apiece.

The company aims to use the deal proceeds to advance the growth of its Tucumã project and Caraiba operations, as well as further expand regional exploration in Brazil.

It will also utilise the proceeds for working capital and other general corporate purposes.

Earlier this month, Ero Copper announced a $105m bought deal financing.

Underwriters agreed to buy 8.5 million shares on a bought-deal basis. They were also granted an option to buy another 15% of the offering to cover over-allotments, exercisable within 30 days.

The Tucumã project is located near the town of Tucumã within the Carajás Mineral Province in Pará State, Brazil.

Results from the project’s feasibility study, released in 2021, show that it can add up to 326,000 tonnes of recovered copper over a 12-year life of mine.

The study also indicated that Tucumã’s initial capital cost is $294m with a post-tax net present value of $380m.

Its post-tax internal rate of return was 41.8% and has a post-tax payback period of 1.4 years.

Last month, the company stated that 70% of the work at the Tucumã project had been completed.

All of the engineering, procurement and construction activities are progressing to start copper production in the second half of next year.

The Caraíba mine is located 385km from the capital city of Salvador in Bahia, Brazil. It comprises fully integrated mining operations and processing facilities, including the Pilar and Vermelhos underground mines, as well as the Surubim open pit mine.

Ore produced from the mine is processed using crushing and floating methods at the Caraíba mill. A concentrate with a grading between 32% and 35% copper is shipped to international markets from the Port of Salvador.