Ivanhoe Electric (NYSE American: IE; TSX: IE) has received credit approvals for a US$200 million senior secured multi-draw bridge facility to support early-stage development of its Santa Cruz Copper Project in Arizona. The facility, arranged by National Bank Capital Markets, Société Générale, and BMO Capital Markets, marks a significant step in the company’s broader project financing strategy.
The bridge facility will provide liquidity for initial construction activities and working capital requirements ahead of long-term financing, which is expected to include project-level minority investment and debt. Closing is anticipated in December 2025, subject to final documentation and customary conditions.
Ivanhoe Electric is also in advanced discussions with potential strategic partners and lenders, including the U.S. Export-Import Bank, which has issued a Letter of Interest for US$825 million in project debt. The company aims to finalize its full financing package in the first half of 2026, aligning with its timeline for first copper cathode production in late 2028.
Robert Friedland, Chairman of Ivanhoe Electric commented, “As we advance toward breaking ground in 2026, Santa Cruz is steadily marching on the path to becoming one of the first new copper mines built in the U.S. in almost two decades. Our mining process is designed to produce 99.99% pure copper metal on the Santa Cruz site, without the need for a smelter, thanks to the very high grade nature of our oxide copper reserves. Santa Cruz is the first step in our vision to grow a new American-based and American-focused critical metals company. Today’s credit approvals, coming from this group of top-tier mining financiers, are a clear vote of confidence in the project, our people, and this vision.”
Taylor Melvin, President and CEO of Ivanhoe Electric added, “The receipt of credit approvals for a $200 million facility for our Santa Cruz Copper Project, led by financial institutions who are established leaders in global mining finance, is an extraordinary endorsement of the quality of our project and our team. The bank group conducted extensive technical due diligence as part of their credit approval process, and we are grateful for their support for our Company and the Santa Cruz Copper Project. Upon closing of the Bridge Facility, we will have added over $360 million in liquidity this quarter. Ivanhoe Electric is in an exceptionally strong financial position as we enter a critical development year in 2026 for our Santa Cruz Copper Project. Santa Cruz is projected to employ about 1,000 highly skilled workers during the construction phase and produce approximately 3 billion pounds of pure copper metal over its initial 23-year mine life. Ivanhoe Electric is poised to become the newest producer of copper metal in the United States, delivering copper directly to U.S. consumers and enhancing our nation’s supply chain security.”
Key Terms of the Facility:
- Size: US$200 million
- Maturity: Two years
- Pricing: SOFR + 5.0%, stepping up by 0.5% every six months
- Security: Ivanhoe Electric’s private land and physical assets at Santa Cruz
