Ivanhoe Electric Announces Full Exercise and Closing of Underwriters' Option for $22.5 Million in Public Offering of Common Stock, Increasing Gross Proceeds to $172.5 Million

Rhea-AI Summary

Ivanhoe Electric (NYSE American: IE) announced on October 27, 2025 that the underwriters fully exercised their option to purchase an additional 1,500,000 shares, closing an underwritten public offering of a total of 11,500,000 common shares at $15.00 per share. Gross proceeds were $172.5 million before underwriting discounts, commissions and estimated offering expenses.

Net proceeds are intended to pay remaining land purchase obligations and fund early development at the Santa Cruz Copper Project (Arizona), support exploration at current projects and joint ventures, and for working capital and general corporate purposes.

Positive

• Gross proceeds of $172.5 million
• Total 11,500,000 shares sold at $15.00 per share
• Proceeds allocated to Santa Cruz land payments and early development
• Proceeds earmarked for exploration at current projects and joint ventures

Negative

• Issuance of 11,500,000 new shares increases outstanding share count
• Net proceeds reduced by underwriting discounts, commissions and offering expenses

Insights

Capital Markets Analyst

Raised $172.5 million via a follow-on public offering; proceeds earmarked for Santa Cruz project payments, development, exploration and working capital.

The company completed the underwriters\' full option on October 27, 2025, selling an aggregate of 11,500,000 shares at $15.00 per share for gross proceeds of $172.5 million. The financing involved BMO Capital Markets as lead and J.P. Morgan and National Bank of Canada as book-runners, and relied on an effective Form S-3 (declared effective July 10, 2023) and prospectus supplements filed on October 22, 2025.

The net proceeds are explicitly allocated to complete remaining land payments at the Santa Cruz Copper Project, fund early development and exploration across projects and joint ventures, and for general corporate purposes. That allocation strengthens near-term funding for these specific capital needs while creating immediate dilution equal to the newly issued shares; monitor subsequent disclosures for exact net proceeds after underwriting fees and the company\'s pacing of planned spend.

Phoenix, Arizona--(Newsfile Corp. - October 27, 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 full exercise and closing on October 27, 2025, of the underwriters' option to purchase an additional 1,500,000 shares of Ivanhoe Electric's common stock at a public offering price of $15.00, pursuant to the previously announced and completed underwritten public offering of 10,000,000 shares of Ivanhoe Electric's common stock at a public offering price of $15.00 per share. The gross proceeds from the offering, including the proceeds from the exercise of the underwriters' option, were $172.5 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Ivanhoe Electric.

We intend to use the net proceeds from this offering to complete the remaining payments owed from the purchase of land at our Santa Cruz Copper Project in Arizona, to fund early development activities at the Santa Cruz Copper Project, to fund exploration activities at our current projects and joint ventures, and for other working capital and general corporate purposes.

BMO Capital Markets acted as lead book-running manager of the offering. J.P. Morgan and National Bank of Canada Capital Markets acted as book-running managers of the offering.

A registration statement on Form S-3 (No. 333-273195) relating to these securities has been filed with the U.S. Securities and Exchange Commission (the "SEC") and was automatically declared effective on July 10, 2023. The shares being offered in this offering were offered by means of a prospectus supplement and accompanying prospectus relating to the offering that form a part of the registration statement. The final prospectus supplement relating to the offering was filed with the SEC on October 22, 2025, and is available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained from BMO Capital Markets Corp., Attn: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, email: bmoprospectus@bmo.com.

The final MJDS prospectus supplement relating to and describing the terms of the offering was filed with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada (except Québec) on October 22, 2025 and copies of the final MJDS prospectus supplement and accompanying final base MJDS prospectus relating to the offering may be obtained from the underwriters and will be available under Ivanhoe Electric's profile on SEDAR+ at www.sedarplus.ca.

In obtaining the approval of the Toronto Stock Exchange of the Offering, Ivanhoe Electric relied on the exemption set forth in Section 602.1 of the TSX Company Manual available to "Eligible lnterlisted Issuers", since Ivanhoe Electric's common stock is listed on the NYSE American and had less than 25% of its overall trading volume occurring in Canada during the 12 months prior to launch of the Offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Ivanhoe Electric

We are a U.S. company that combines advanced mineral exploration technologies (Typhoon™ and Computational Geosciences Inc.) with electric metals exploration projects predominantly located in the United States, headlined by the Santa Cruz Copper Project in Arizona. Our mineral exploration efforts focus on copper as well as other metals, including nickel, vanadium, cobalt, platinum group elements, gold, and silver. 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.

Contact Information

Mike Patterson
Vice President, Investor Relations and Business Development
Email: mike@ivnelectric.com
Phone 1-480-601-7878

Forward-Looking Statements

This press release contains statements that constitute "forward looking information" and "forward-looking statements" within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding the use of proceeds from the offering are forward-looking statements. Forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including management's discretion over the use of proceeds of the offering; we will require substantial additional capital investment in the future; our mineral projects are all at the exploration or development stage and are subject to the significant risks and uncertainties associated with mineral exploration and development; we have inferred resources that may never be upgraded to a higher category of resource or reserve; we have a limited operating history on which to base an evaluation of our business and prospects; we depend on our material projects for our future operations; our mineral resource and reserve calculations and economic projections relating to our properties are only estimates; actual capital costs, operating costs, production and economic returns may differ significantly from those we have anticipated; the title to some of the mineral properties may be uncertain or defective; our business is subject to changes in the prices of copper, gold, silver, nickel, cobalt, vanadium and platinum group metals; we have claims and legal proceedings against one of our subsidiaries; our business is subject to significant risk and hazards associated with exploration activities, mine development, construction and future mining operations; we may fail to identify attractive acquisition candidates or joint ventures with strategic partners or be unable to successfully integrate acquired mineral properties or successfully manage joint ventures; our success is dependent in part on our joint venture partners and their compliance with our agreements with them; our business is extensively regulated by the United States and foreign governments as well as local governments; we may be adversely affected by tariff and trade actions; we and the VRB China Joint Venture may not receive the anticipated payments from Red Sun in connection with the VRB China Joint Venture transaction in full or in a timely manner; our subsidiary Cordoba's sale of its interest in the Alacrán project may not be completed; the requirements that we obtain, maintain and renew environmental, construction and mining permits are often a costly and time-consuming process; our non-U.S. operations are subject to additional political, economic and other uncertainties not generally associated with domestic operations; and our operations may be impacted by public health emergencies, pandemics, epidemics, or similar events. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements described in or incorporated by reference in Ivanhoe Electric's preliminary prospectus supplement relating to this offering and accompanying base prospectus that form a part of the registration statement on Form S-3, as amended, filed with the SEC and preliminary MJDS prospectus supplement relating to this offering and accompanying final base MJDS prospectus filed with Canadian securities commissions. Ivanhoe Electric expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release. We caution you not to place undue reliance on these forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/271976

FAQ

What did Ivanhoe Electric (IE) announce on October 27, 2025?

Ivanhoe Electric announced the full exercise of the underwriters' option, closing a public offering of 11,500,000 shares at $15.00 per share for gross proceeds of $172.5 million.

How will Ivanhoe Electric (IE) use the $172.5 million raised in the October 2025 offering?

Net proceeds are intended to complete land payments and fund early development at the Santa Cruz Copper Project, support exploration at current projects and joint ventures, and for working capital and general corporate purposes.

How many additional shares did the underwriters exercise in Ivanhoe Electric's offering (IE)?

The underwriters exercised an option to purchase an additional 1,500,000 shares, bringing the total offering to 11,500,000 shares.

What is the public offering price per share for Ivanhoe Electric (IE) in the October 2025 offering?

The public offering price was $15.00 per share.

Will the October 2025 offering affect Ivanhoe Electric (IE) shareholders?

Yes. The offering issued 11,500,000 new shares, which increases the company's outstanding share count and reduces net proceeds by underwriting fees and offering expenses.