Ivanhoe Electric Receives Indication for up to $825 Million in Financing from Export-Import Bank of the United States for Santa Cruz Copper Project
Ivanhoe Electric (NYSE American: IE) has received a Letter of Interest from the Export-Import Bank of the United States (EXIM Bank) for potential debt financing of up to $825 million with a 15-year repayment term for its Santa Cruz Copper Project in Arizona.
The financing would be provided through EXIM Bank's Make More in America initiative, aimed at strengthening domestic supply chains and reducing strategic vulnerabilities. The Santa Cruz project, which is 100%-owned by Ivanhoe Electric, is positioned to produce pure copper cathode on-site to meet rising US demand for domestically sourced copper.
The company is also pursuing additional government support programs, including EXIM Bank's Supply Chain Resilience Initiative and Section 45X advanced manufacturing production tax credit. The Preliminary Feasibility Study is scheduled for completion in June 2025, with initial construction activities planned to begin in the first half of 2026.
Ivanhoe Electric (NYSE American: IE) ha ricevuto una Lettera di Interesse dalla Export-Import Bank degli Stati Uniti (EXIM Bank) per un potenziale finanziamento tramite debito fino a 825 milioni di dollari con un piano di rimborso di 15 anni per il suo progetto Santa Cruz Copper in Arizona.
Il finanziamento sarebbe erogato nell’ambito dell’iniziativa Make More in America di EXIM Bank, volta a rafforzare le catene di approvvigionamento interne e a ridurre le vulnerabilità strategiche. Il progetto Santa Cruz, di proprietà al 100% di Ivanhoe Electric, è destinato a produrre sul posto cátodo di rame puro per soddisfare la crescente domanda statunitense di rame di origine nazionale.
L’azienda sta inoltre perseguendo ulteriori programmi di supporto governativo, inclusi l’Iniziativa per la Resilienza della Catena di Fornitura di EXIM Bank e il credito d’imposta per la produzione avanzata della Sezione 45X. Lo Studio di Fattibilità Preliminare è previsto per il completamento a giugno 2025, con le attività di costruzione iniziali programmate per la prima metà del 2026.
Ivanhoe Electric (NYSE American: IE) ha recibido una Carta de Interés del Banco de Exportación e Importación de los Estados Unidos (EXIM Bank) para un posible financiamiento mediante deuda de hasta 825 millones de dólares con un plazo de pago de 15 años para su Proyecto de Cobre Santa Cruz en Arizona.
El financiamiento se otorgaría a través de la iniciativa Make More in America de EXIM Bank, que busca fortalecer las cadenas de suministro nacionales y reducir vulnerabilidades estratégicas. El proyecto Santa Cruz, propiedad al 100% de Ivanhoe Electric, está destinado a producir cátodos de cobre puro en el sitio para satisfacer la creciente demanda estadounidense de cobre de origen nacional.
La compañía también está buscando apoyo adicional del gobierno, incluyendo la Iniciativa de Resiliencia de la Cadena de Suministro de EXIM Bank y el crédito fiscal por producción avanzada de manufactura de la Sección 45X. El Estudio de Factibilidad Preliminar está programado para completarse en junio de 2025, con las actividades iniciales de construcción planeadas para la primera mitad de 2026.
Ivanhoe Electric (NYSE American: IE)가 미국 수출입은행(EXIM Bank)으로부터 애리조나 산타크루즈 구리 프로젝트에 대해 최대 8억 2,500만 달러의 부채 금융 가능성에 관한 관심 서한을 받았습니다. 상환 기간은 15년입니다.
이 금융은 국내 공급망 강화와 전략적 취약성 감소를 목표로 하는 EXIM Bank의 'Make More in America' 이니셔티브를 통해 제공될 예정입니다. 산타크루즈 프로젝트는 Ivanhoe Electric이 100% 소유하고 있으며, 미국 내에서 생산된 구리에 대한 수요 증가를 충족하기 위해 현장에서 순수 구리 음극을 생산할 계획입니다.
회사는 또한 EXIM Bank의 공급망 회복력 이니셔티브와 45X 조항의 첨단 제조 생산 세액 공제 등 추가 정부 지원 프로그램도 추진 중입니다. 예비 타당성 조사는 2025년 6월에 완료될 예정이며, 초기 건설 활동은 2026년 상반기에 시작될 계획입니다.
Ivanhoe Electric (NYSE American : IE) a reçu une lettre d’intérêt de la part de la Banque d’Export-Import des États-Unis (EXIM Bank) pour un potentiel financement par emprunt pouvant atteindre 825 millions de dollars avec une période de remboursement de 15 ans pour son projet cuivre Santa Cruz en Arizona.
Ce financement serait accordé dans le cadre de l’initiative Make More in America de l’EXIM Bank, visant à renforcer les chaînes d’approvisionnement nationales et à réduire les vulnérabilités stratégiques. Le projet Santa Cruz, détenu à 100 % par Ivanhoe Electric, est destiné à produire sur site du cathode de cuivre pur afin de répondre à la demande croissante des États-Unis en cuivre d’origine locale.
La société poursuit également d’autres programmes de soutien gouvernementaux, notamment l’Initiative de Résilience des Chaînes d’Approvisionnement de l’EXIM Bank et le crédit d’impôt pour la production manufacturière avancée de la Section 45X. L’étude de faisabilité préliminaire est prévue pour être achevée en juin 2025, avec les premières activités de construction planifiées pour le premier semestre 2026.
Ivanhoe Electric (NYSE American: IE) hat ein Interessenbekundungsschreiben von der Export-Import Bank der Vereinigten Staaten (EXIM Bank) für eine mögliche Fremdfinanzierung von bis zu 825 Millionen US-Dollar mit einer Rückzahlungsfrist von 15 Jahren für sein Santa Cruz Kupferprojekt in Arizona erhalten.
Die Finanzierung würde im Rahmen der Make More in America-Initiative der EXIM Bank bereitgestellt, die darauf abzielt, die heimischen Lieferketten zu stärken und strategische Verwundbarkeiten zu verringern. Das Santa Cruz-Projekt, das zu 100 % im Besitz von Ivanhoe Electric ist, soll vor Ort reinen Kupferkathoden produzieren, um die steigende US-Nachfrage nach inländisch bezogenem Kupfer zu decken.
Das Unternehmen verfolgt zudem weitere staatliche Förderprogramme, darunter die Supply Chain Resilience Initiative der EXIM Bank und die Steuervergünstigung für die fortschrittliche Fertigung gemäß Abschnitt 45X. Die vorläufige Machbarkeitsstudie soll im Juni 2025 abgeschlossen werden, mit geplanten ersten Bauaktivitäten in der ersten Hälfte des Jahres 2026.
- Potential access to $825 million in debt financing with favorable 15-year repayment terms
- Project qualifies for multiple government support programs and tax incentives
- 100% ownership of the Santa Cruz Copper Project on private land
- Project development progressing on schedule with construction planned for 2026
- Final lending commitment subject to EXIM Bank's due diligence and approval process
- Project still pending completion of Preliminary Feasibility Study
- Construction not yet started and subject to permitting approval
Insights
The $825 million potential financing from EXIM Bank represents a significant development for Ivanhoe Electric, potentially covering a substantial portion of the Santa Cruz Copper Project's capital requirements. With a 15-year repayment tenor, this financing package would provide favorable long-term debt structure, considerably reducing the near-term financial burden on the company.
This Letter of Interest is particularly noteworthy given Ivanhoe's $669 million market capitalization, as securing project financing of this magnitude without excessive equity dilution is critical for shareholder value preservation. The EXIM Bank's involvement through the Make More in America initiative adds credibility and reduces political risk for the project.
While this is not yet a binding commitment - EXIM must still complete due diligence and finalize terms - it represents a material de-risking event for Santa Cruz's development pathway. The company is prudently pursuing multiple financing avenues simultaneously, including the EXIM Supply Chain Resilience Initiative and Section 45X tax credits, creating a potential funding stack that could significantly reduce the equity component required.
The timing aligns well with the project development schedule, with the Preliminary Feasibility Study expected in June 2025 and construction targeted for H1 2026. This financing progress, coupled with the advancement of permitting on private land, substantially improves the project's execution probability and potential ROI for Ivanhoe shareholders.
The EXIM Bank's interest in Ivanhoe's Santa Cruz project highlights the strategic importance of domestic copper production in the current geopolitical climate. This project's ability to produce pure copper cathode on-site is a critical differentiator, eliminating dependence on foreign smelting and refining capacity - a vulnerability in many competing domestic copper developments.
Santa Cruz's location on private land in Arizona significantly streamlines the permitting process compared to projects on federal lands, which often face extensive regulatory delays. This positioning gives Ivanhoe a meaningful timeline advantage in bringing new copper supply to market. The integrated mine-to-cathode approach also provides superior economics versus concentrate producers who face increasing treatment and refining charges from international smelters.
The project's advancement comes amid a tightening global copper market, with many analysts projecting significant supply deficits by 2030 due to electrification trends and infrastructure modernization. The United States currently imports approximately 30-40% of its refined copper consumption, creating national security and supply chain vulnerabilities that Santa Cruz directly addresses.
Ivanhoe's engagement of Fluor Inc. as project lead brings top-tier engineering expertise to the development. Their on-schedule progress toward the June 2025 Preliminary Feasibility Study completion, coupled with this potential financing breakthrough, positions Santa Cruz as one of the most advanced and credible new copper projects in the domestic pipeline.
United States Government Support Reinforces Strategic Importance of Santa Cruz Copper Project in Enhancing Domestic Copper Supply
Santa Cruz Copper Project Preliminary Feasibility Study on Track for June Completion
Project Permitting, Financing, and Detailed Engineering Rapidly Advancing Towards Construction
Phoenix, Arizona--(Newsfile Corp. - April 15, 2025) - Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) ("Ivanhoe Electric") Executive Chairman Robert Friedland and President and Chief Executive Officer Taylor Melvin are pleased to announce the receipt of a Letter of Interest from the Export-Import Bank of the United States ("EXIM Bank") outlining the potential to provide up to
EXIM Bank is the official export credit agency of the United States. It is a government agency that offers financial support to companies through means such as direct loans and loan guarantees, working capital guarantees, and export credit insurance. EXIM Bank's Make More in America initiative and its China and Transformational Exports Program are designed to boost United States' competitiveness, strengthen supply chains, and reduce strategic vulnerabilities.
The Santa Cruz Copper Project aligns with the EXIM Bank's Make More in America initiative, which is intended to increase the United States' supply of critical minerals to foster economic growth and strengthen national security through domestic resource production.
Mr. Friedland commented: "Receipt of the Export-Import Bank of the United States' Letter of Interest underscores the importance of our Santa Cruz Copper Project to grow domestic copper production. The United States urgently needs more domestically produced copper to support the rapid expansion and rebuilding of its electric transmission and transportation infrastructure, national defense capabilities, and technologies of the future. Santa Cruz is positioned perfectly to be a source of pure copper cathode to help the United States achieve its strategic mission of greater self-reliance on domestic production of critical metals."
Mr. Melvin commented: "We are grateful for this strong show of support by the Export-Import Bank of the United States for the development of our Santa Cruz Copper Project. The people of the EXIM Bank have devoted significant time to learning about our project and are committed to supporting the growth of US critical metals production. We look forward to working together with the EXIM Bank to advance this significant financing opportunity as we rapidly progress our final engineering and permitting efforts at Santa Cruz towards initial construction in 2026. As an advanced-stage copper project on private land in the United States,
Ivanhoe Electric continues to pursue additional government support programs, including the EXIM Bank's Supply Chain Resilience Initiative and the Section 45X advanced manufacturing production tax credit. The Supply Chain Resilience Initiative provides financing tools to strengthen and diversify U.S. access to critical mineral supply chains, while Section 45X offers direct tax incentives for the domestic production and processing of those minerals.
Ivanhoe Electric is assessing EXIM Bank's interest together with other financing alternatives available to it for the development of the Santa Cruz Copper Project. In the event Ivanhoe Electric proceeds with a formal application, EXIM Bank will need to conduct all requisite due diligence necessary to determine if a final lending commitment would be made. Any final lending commitment will be dependent on meeting EXIM Bank's underwriting criteria, authorization process, and finalization and satisfaction of terms and conditions. All final lending commitments must be in compliance with EXIM Bank policies as well as program, legal and eligibility requirements.
Santa Cruz Copper Project Advancing Rapidly Toward Construction, Poised to Strengthen U.S. Copper Supply Chain Independence
The team at Santa Cruz, which includes Fluor Inc. as project lead, remains on schedule to deliver the Santa Cruz Copper Project Preliminary Feasibility Study in June 2025. The Preliminary Feasibility Study will support project financing activities. Permitting and detailed engineering work are being aggressively advanced throughout 2025. Ivanhoe Electric anticipates that permits will be received and initial construction activities will begin in the first half of 2026.
About Ivanhoe Electric
We are a U.S. company that combines advanced mineral exploration technologies with electric metals exploration projects predominantly located in the United States. We use our accurate and powerful Typhoon™ geophysical surveying system, together with advanced data analytics provided by our subsidiary, Computational Geosciences Inc., to accelerate and de-risk the mineral exploration process as we seek to discover new deposits of critical metals that may otherwise be undetectable by traditional exploration technologies.
We believe the United States is significantly underexplored and has the potential to yield major new discoveries of critical metals. Our mineral exploration efforts focus on copper as well as other metals including nickel, vanadium, cobalt, platinum group elements, gold and silver. Through the advancement of our portfolio of electric metals exploration projects, headlined by the Santa Cruz Copper Project in Arizona and the Tintic Copper-Gold Project in Utah, as well as other exploration projects in the United States, we intend to support United States supply chain independence by finding and delivering the critical metals necessary for the electrification of the economy. We also operate a 50/50 joint venture with Saudi Arabian Mining Company Ma'aden to explore for minerals on ~48,500 km2 of underexplored Arabian Shield in the Kingdom of Saudi Arabia. In 2024, we also launched an Exploration Alliance with BHP, the world's largest mining company, to explore for new critical metal deposits across six target areas in the Southwest United States.
Website: www.ivanhoeelectric.com
Contact Information
Mike Patterson
Vice President, Investor Relations and Business Development
Email: mike@ivnelectric.com
Phone: 1-480-601-7878
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Ivanhoe Electric's Executive Chairman Robert Friedland: @robert_ivanhoe
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Ivanhoe Electric's investor relations website located at www.ivanhoeelectric.com should be considered Ivanhoe Electric's recognized distribution channel for purposes of the Securities and Exchange Commission's Regulation FD.
Forward-Looking Statements
Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable U.S. and Canadian securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Ivanhoe Electric, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect Ivanhoe Electric's current expectations regarding future events, performance and results and speak only as of the date of this news release.
Such statements in this news release include, without limitation statements regarding the Letter of Interest from the Export-Import Bank of the United States ("EXIM Bank") and the potential for EXIM Bank to provide up to
Forward-Looking statements are based on management's beliefs and assumptions and on information currently available to management. Such statements are subject to significant risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including the refusal or inability of EXIM Bank to ultimately provide financing; the inability to negotiate and sign definitive agreements for financing by EXIM Bank or the inability for us to satisfy conditions to financing;; changes in the prices of copper or other metals Ivanhoe Electric is exploring for; the results of exploration and drilling activities and/or the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations; the final assessment of exploration results and information that is preliminary; the significant risk and hazards associated with any future mining operations, extensive regulation by the U.S. government as well as local governments; changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with Ivanhoe Electric to perform as agreed; and the impact of political, economic and other uncertainties associated with operating in foreign countries, and the impact of the COVID-19 pandemic and the global economy. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risk factors described in Ivanhoe Electric's Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission at www.sec.gov.
No assurance can be given that such future results will be achieved. Forward-Looking statements speak only as of the date of this news release. Ivanhoe Electric cautions you not to place undue reliance on these forward-looking statements. Subject to applicable securities laws, Ivanhoe Electric does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release, and Ivanhoe Electric expressly disclaims any requirement to do so.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/248537
FAQ
What is the size of EXIM Bank's potential financing for Ivanhoe Electric's Santa Cruz Project?
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What additional government support programs is Ivanhoe Electric (IE) pursuing for the Santa Cruz Project?
What are the key conditions for Ivanhoe Electric to secure the EXIM Bank financing?
