Ero Copper (ERO) said Monday it has expanded its gold supplying agreement with a subsidiary of Royal Gold for upfront proceeds of an additional $50 million.

The new deal adds to the original June 2021 agreement related to Ero's Xavantina mine in Mato Grosso, Brazil, raising Royal Gold's total payments to Ero for the supply to $160 million, the company said. In return, Ero Copper has agreed to deliver more gold to Royal Gold and expanded the area covered by the agreement to include new lands acquired since the original supply agreement, it added.

Under the amended agreement's Stage II terms, Ero Copper will be required to deliver up to a total of 160,000 ounces of gold, with Royal Gold paying 40% of the spot market price, according to the company. With this updated deal, Royal Gold will get an additional 40,200 ounces of gold, beginning delivery in 2028, the company added.

Shares of the company were down about 1.2% in recent Monday trading.

Price: 12.04, Change: -0.20, Percent Change: -1.63