What's Happening?
Ivanhoe Electric has received credit approval for a $200 million senior secured multi-draw bridge facility to finance its Santa Cruz copper project in Arizona. The facility, arranged by a banking syndicate including National Bank Capital Markets, Société
Générale, and BMO Capital Markets, will support early construction activities and working capital needs. The project aims to produce high-grade copper cathode by late 2028, marking a significant development in U.S. copper mining.
Why It's Important?
This financing is a critical step for Ivanhoe Electric as it progresses towards developing one of the first new copper mines in the U.S. in nearly two decades. The project is expected to contribute to the domestic supply of copper, a vital metal for various industries, including technology and renewable energy. The involvement of top-tier financiers indicates strong confidence in the project's potential, which could stimulate economic growth and job creation in the region.
What's Next?
Ivanhoe Electric plans to finalize the bridge facility by December 2025 and is in advanced discussions with potential minority interest partners and project debt providers. The company aims to complete the project financing in the first half of 2026, with initial copper production targeted for late 2028. The successful development of the Santa Cruz project could position Ivanhoe Electric as a leading player in the U.S. critical metals industry.
