Ivanhoe Electric (TSX: IE) has secured further funding in support of their flagship Santa Cruz Copper Project in Arizona. The company this morning indicated that it has secured credit approvals for a US$200 million senior secured multi draw bridge facility from a syndicate of lenders.
“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. [..] 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,” commented Robert Friedland, Executive Chairman of Ivanhoe Electric.
The credit approval and related bridge facility, provided by National Bank, Societe General, and BMO Capital Markets, is expected to support the development of the Santa Cruz Copper Project by providing liquidity for early construction activities alongside working capital requirements. The project as a whole, once constructed, is expected to produce 72,000 tonnes per year of copper per year for the first fifteen years of mine life at an average cost of $1.32 per pound.
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First copper cathode production is currently targeted for late 2028.
The bridge facility is expected to close in December, subject to definitive documentation being signed. The facility is expected to have a two year maturity, with pricing at the three month SOFR plus a margin of 5.0%, which increases by 0.5% every six months upon closing. The facility is expected to be secured by Ivanhoe’s private land holdings and other physical assets.
Ivanhoe Electric at the same time is said to be in advanced discussions with further debt providers as well as potential minority interest partners, including the US Export Import Bank to secure the funding required for the Santa Cruz project. Initial capital costs for project are currently estimated at $1.24 billion.
“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,” commented Taylor Melvin, CEO of Ivanhoe Electric.
Ivanhoe Electric last traded at $18.80 on the TSX.
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