EXIM Bank considers $825m financing for Ivanhoe’s Santa Cruz project in US

Ivanhoe Electric has received a missive of involvement from the Export-Import Bank of the United States (EXIM Bank) indicating the anticipation of providing up to $825m successful indebtedness financing for the improvement of the Santa Cruz Copper Project successful Arizona, US.

The Santa Cruz Copper Project, with Fluor arsenic the task lead, covers 5,975 acres of backstage onshore and includes associated h2o rights.

It is estimated to incorporate indicated mineral resources of 226.7 cardinal tonnes (mt) grading 1.24% full copper and inferred resources of 149mt grading 1.24% full copper.

The projected financing, with a 15-year repayment period, aligns with EXIM Bank's Make More successful America initiative.

The initiative, on with the China and Transformational Exports Programme, aims to heighten US competitiveness, bolster proviso chains and code strategical vulnerabilities.

The Santa Cruz Copper Project qualifies for this inaugural arsenic it supports the home accumulation of captious minerals, contributing to economical maturation and nationalist security, Ivanhoe said.

Ivanhoe Electric is evaluating EXIM Bank's look of involvement alongside different financing options for the project.

Ivanhoe Electric enforcement president Robert Friedland said: “Receipt of the Export-Import Bank of the United States’ Letter of Interest underscores the value of our Santa Cruz Copper Project to turn home copper production.

“The United States urgently needs much domestically produced copper to enactment the accelerated enlargement and rebuilding of its electrical transmission and proscription infrastructure, nationalist defence capabilities and technologies of the future.

“Santa Cruz is positioned perfectly to beryllium a root of axenic copper cathode to assistance the US execute its strategical ngo of greater self-reliance connected home accumulation of captious metals.”

The task is besides being considered for further authorities enactment programmes specified arsenic EXIM Bank's Supply Chain Resilience Initiative and the Section 45X precocious manufacturing accumulation taxation credit.

These initiatives supply fiscal tools and taxation incentives to fortify the US' captious mineral proviso chains.

Should Ivanhoe Electric taxable a ceremonial application, EXIM Bank volition behaviour the indispensable owed diligence to find if a last lending committedness is feasible.

Ivanhoe plans to implicit a preliminary feasibility survey for the task by June 2025 with archetypal operation scheduled to commence successful the archetypal fractional of 2026.

In August 2024, Ivanhoe secured 100% ownership of the mineral rights astatine the Santa Cruz Project aft paying the last $10m, arsenic stipulated by an enactment deal.