Ivanhoe Electric Closes $200 Million Bank Credit Facility to Support Santa Cruz Copper Project Development

Rhea-AI Summary

Ivanhoe Electric (NYSE American: IE) closed a $200 million senior secured multi-draw bridge facility through Mesa Cobre Holding Corporation on December 15, 2025, led by National Bank of Canada, BMO Capital Markets, and Societe Generale.

The two-year, single‑repayment facility carries SOFR + 5.0% margin (approximate current drawn rate ~8.7%) with margin step-ups at months 6, 12 and 18, and is secured by private land and project assets for the Santa Cruz Copper Project. The facility is intended to strengthen liquidity ahead of project financing and to fund the start of major construction activities in 2026; Ivanhoe Electric expects to complete project financing by mid‑2026.

Positive

• $200M senior secured multi-draw bridge facility closed
• Bridge supports start of major construction in 2026
• Banking syndicate: National Bank of Canada, BMO Capital Markets, Société Générale
• Company expects project financing completion by mid-2026
• EXIM issued a Letter of Interest for $825M of project debt

Negative

• Borrowing cost ~8.7% today (SOFR + 5.0% with step-ups)
• Margin increases of 0.5% at months 6, 12 and 18
• Two-year bullet structure creates near-term refinancing risk
• Facility secured by private land and project assets (encumbrance)

News Market Reaction

+1.14%

2 alerts

+1.14% News Effect

+$24M Valuation Impact

$2.16B Market Cap

1K Volume

On the day this news was published, IE gained 1.14%, reflecting a mild positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $24M to the company's valuation, bringing the market cap to $2.16B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Bridge facility size: $200 million Maturity term: Two years Interest margin: SOFR + 5.0% +5 more

8 metrics

Bridge facility size $200 million Senior secured multi-draw bridge facility for Santa Cruz Copper Project

Maturity term Two years Single repayment at maturity for bridge facility

Interest margin SOFR + 5.0% Three-month Secured Overnight Financing Rate plus margin on drawn amounts

Rate step-ups 0.5% at months 6, 12, 18 Margin increases during two-year term

Initial borrowing rate 8.7% Borrowing rate on drawn amounts at date of news release

EXIM LOI amount $825 million Letter of Interest for project debt for Santa Cruz Copper Project

Construction start 2026 Funding supports major construction activities at Santa Cruz in 2026

Project financing timing Mid-2026 Expected completion of full project financing process

Market Reality Check

Price: $16.47 Vol: Volume 1,468,213 vs 20-da...

low vol

$16.47 Last Close

Volume Volume 1,468,213 vs 20-day average 2,115,687; relative volume at 0.69 ahead of this financing update. low

Technical Shares at $15.05 were trading above the $9.63 200-day MA prior to this announcement.

Peers on Argus

IE fell 6.47% while copper peers like FCX (-2.65%), ERO (-2.18%), HBM (-1.62%) a...

IE fell 6.47% while copper peers like FCX (-2.65%), ERO (-2.18%), HBM (-1.62%) and TGB (-1.64%) saw more modest declines, pointing to a more company-specific move.

Historical Context

5 past events · Latest: Nov 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 19	Land acquisition	Positive	+7.1%	Final $39.3M land payments cleared path for Santa Cruz construction.
Nov 13	Debt financing	Positive	-3.4%	Secured credit approval for $200M bridge facility to fund project.
Oct 27	Equity offering	Negative	-4.0%	Underwriters fully exercised option, lifting equity raise to $172.5M.
Oct 21	Equity offering	Negative	-5.9%	Priced upsized 10M-share public offering at $15.00 per share.
Oct 21	Equity offering	Negative	-5.9%	Announced proposed $125M underwritten common stock offering.

Pattern Detected

Equity offerings and financing steps often saw negative price reactions, while de-risking project milestones like land completion drew a positive response.

Recent Company History

Over the last few months, Ivanhoe Electric focused heavily on funding and de-risking the Santa Cruz Copper Project. Equity offerings in October 2025 raised up to $172.5 million but coincided with share price declines after announcement. In contrast, completing the final $39.3 million land payment in November 2025 drew a positive reaction. The initial credit approval for this same $200 million bridge facility saw a mild pullback, so today’s closing of the facility extends an existing financing storyline rather than starting a new one.

Market Pulse Summary

This announcement marks the closing of a $200 million senior secured bridge facility that provides l...

Analysis

This announcement marks the closing of a $200 million senior secured bridge facility that provides liquidity for Ivanhoe Electric’s Santa Cruz Copper Project ahead of major construction in 2026. It sits alongside an existing EXIM Bank letter of interest for up to $825 million in project debt and an expected mid‑2026 financing completion. Investors may watch how borrowing costs, drawdown timing, and eventual long‑term debt terms interact with project execution milestones.

Key Terms

senior secured, multi-draw bridge facility, secured overnight financing rate, project debt

4 terms

senior secured financial

"previously announced senior secured multi-draw bridge facility of $200 million"

Senior secured describes a loan or bond that has first claim on a company’s assets and is backed by specific collateral, like a mortgage on property. For investors, that means they are paid before other creditors if the company struggles or is liquidated, reducing the chance of loss compared with unsecured or junior debt. Think of it as a front-of-the-line, collateral-backed claim that typically carries lower interest because of that added protection.

multi-draw bridge facility financial

"senior secured multi-draw bridge facility of $200 million (the "Bridge Facility")"

A multi-draw bridge facility is a short-term loan structure that lets a company take several separate withdrawals of cash over an agreed period to cover immediate needs until permanent financing is secured. It matters to investors because it provides temporary liquidity and can change a company’s risk profile — for example by increasing debt or triggering conditions that affect ownership or credit terms — similar to using a line of credit to tide you over until a longer-term mortgage is approved.

secured overnight financing rate financial

"Three-month Secured Overnight Financing Rate plus a margin of 5.0%"

A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.

project debt financial

"potential for project-level minority equity investment and long-term project debt"

Debt taken on specifically to finance a single project — such as building a factory, power plant, or infrastructure asset — where lenders expect to be repaid from the cash the project generates and often from the project's assets rather than the borrower’s other businesses. It matters to investors because the risk and returns are tied to that one project's success; like a loan on a single house, problems with that house won’t necessarily sink the borrower’s other holdings but can threaten the investment in the project itself.

AI-generated analysis. Not financial advice.

Facility Strengthens Liquidity Ahead of Long-Term Project Financing and Construction Activities in 2026

Phoenix, Arizona--(Newsfile Corp. - December 15, 2025) - Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE)  ("Ivanhoe Electric" or the "Company") Executive Chairman Robert Friedland and President and Chief Executive Officer Taylor Melvin are pleased to announce that Ivanhoe Electric's wholly-owned subsidiary, Mesa Cobre Holding Corporation, has closed its previously announced senior secured multi-draw bridge facility of $200 million (the "Bridge Facility") (refer to Ivanhoe Electric's November 13, 2025 news release). The Banking Syndicate is composed of National Bank of Canada, BMO Capital Markets, and Societe Generale as Joint-Lead Arrangers.

The Bridge Facility is a significant milestone in Ivanhoe Electric's long-term financing strategy for the Santa Cruz Copper Project in Arizona. It provides near-term balance sheet strength during ongoing project financing discussions as well as funding for the start of major construction activities at the Santa Cruz Copper Project in 2026. The facility complements ongoing discussions related to the broader project financing plan, which includes the potential for project-level minority equity investment and long-term project debt. On April 15, 2025, Ivanhoe Electric received a Letter of Interest from the U.S. Export-Import Bank ("EXIM") for $825 million of project debt (refer to Ivanhoe Electric's April 15, 2025 news release). The full application for funding from EXIM is in process. Ivanhoe Electric expects to complete the project financing process for the Santa Cruz Copper Project in mid-2026.

Summary of Key Terms of the Bridge Facility

• $200 million senior secured multi-draw bridge facility

• Two-year maturity term, with a single repayment at maturity

• Three-month Secured Overnight Financing Rate plus a margin of 5.0%, increasing by 0.5% on each of the 6^th, 12^th, and 18^th month following the closing date; the borrowing rate on drawn amounts as at the date of this news release would be approximately 8.7%

• Customary arrangement fee and commitment fees on undrawn amounts

• Secured by Ivanhoe Electric's private land holdings and certain physical assets associated with the Santa Cruz Copper Project

Endeavour Financial acted as financial advisor to Ivanhoe Electric on this transaction and has been engaged to secure project financing for the construction of the Santa Cruz Copper Project. Allen Overy Shearman Sterling US LLP acted as legal counsel to the Company with support from Dorsey & Whitney LLP in Arizona.

About Ivanhoe Electric

We are a United States domiciled minerals exploration company with a focus on developing mines from mineral deposits principally located in the United States. We seek to support American supply chain independence by finding and delivering copper and other critical metals vital to advanced manufacturing, infrastructure development, technology, and national security. We use our powerful Typhoon™ geophysical surveying system, together with advanced data analytics provided by our 94.3% owned subsidiary, Computational Geosciences Inc. ("CGI"), to accelerate and de-risk the mineral exploration process as we seek to discover new deposits of critical metals that may otherwise be undetectable by traditional exploration technologies. We believe the United States is significantly underexplored and has the potential to yield major new discoveries of critical metals. Our mineral exploration efforts focus on copper as well as other metals including nickel, cobalt, platinum group elements, gold and silver. Through the advancement of our portfolio of critical metals exploration projects, headlined by the Santa Cruz Copper Project in Arizona, we intend to contribute to domestic supply by developing resources that support industrial and strategic sectors. We also operate a 50/50 joint venture with Saudi Arabian Mining Company ("Maaden") to explore for minerals on ~48,500 km² of underexplored Arabian Shield in Saudi Arabia. Finally, in 2024, we established an exploration alliance with BHP Mineral Resources Inc. ("BHP"), a subsidiary of BHP Group Limited, to search for critical minerals in the United States.

Website: ivanhoeelectric.com

Contact Information

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

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Ivanhoe Electric's Executive Chairman Robert Friedland: @robert_ivanhoe

Ivanhoe Electric: @ivanhoeelectric

Ivanhoe Electric's investor relations website located at www.ivanhoeelectric.com should be considered Ivanhoe Electric's recognized distribution channel for purposes of the Securities and Exchange Commission's Regulation FD.

Forward-Looking Statements

Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable U.S. and Canadian securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Ivanhoe Electric, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", "target", "project" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect Ivanhoe Electric's current expectations regarding future events, performance and results and speak only as of the date of this news release.

Such statements in this news release include, without limitation, statements related to: execution of definitive documentation on the terms currently contemplated for the Bridge Facility; satisfaction of closing conditions and the closing of the Bridge Facility in December 2025; satisfaction of drawdown requirements for draw of funds; the anticipated timing of the initial and subsequent drawdowns of the Bridge Facility; the obtaining of any other financing for the Santa Cruz Copper Project including from strategic and/or financial investors, project debt, and asset-level minority interest partners; the completion of the EXIM project financing process and anticipated timing; and the development of the Santa Cruz Copper Project.

Forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Such statements are subject to significant risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including the inability to secure other sources of project financing or deliver on other aspects of the broader project financing plan; the inability to satisfy drawdown requirements or other requirements for the draw of funds under the Bridge Facility; changes in the prices of copper or other metals Ivanhoe Electric is exploring for; the results of exploration and drilling activities and/or the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations; the final assessment of exploration results and information that is preliminary; the significant risk and hazards associated with any future mining operations, extensive regulation by the U.S. government as well as local governments; changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with Ivanhoe Electric to perform as agreed; and the impact of political, economic and other uncertainties associated with operating in foreign countries, and the impact of the COVID-19 pandemic and the global economy. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risk factors described in Ivanhoe Electric's Annual Report on Form 10-K filed and other disclosures with the U.S. Securities and Exchange Commission.

No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this news release. Ivanhoe Electric cautions you not to place undue reliance on these forward-looking statements. Subject to applicable securities laws, Ivanhoe Electric does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release, and Ivanhoe Electric expressly disclaims any requirement to do so.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/278064

FAQ

What are the key terms of Ivanhoe Electric's $200 million bridge facility (IE)?

It's a $200M senior secured multi-draw bridge with a two-year maturity, single repayment at maturity, and pricing of SOFR + 5.0% with 0.5% step-ups at months 6, 12 and 18.

How will the bridge facility affect Santa Cruz Copper Project construction timeline for IE?

The facility is intended to provide near-term funding to support the start of major construction activities at Santa Cruz in 2026.

Does the Ivanhoe Electric bridge facility reduce refinancing risk for the Santa Cruz project (IE)?

It strengthens near-term liquidity but the two-year bullet structure means refinancing or longer-term project financing is required by mid-2026.

Who are the lenders on the Ivanhoe Electric bridge facility (IE)?

The banking syndicate is led by National Bank of Canada, BMO Capital Markets, and Société Générale.

What is the status of EXIM financing for the Santa Cruz project (IE)?

Ivanhoe Electric received a Letter of Interest from EXIM for $825M of project debt and the full EXIM application remains in process.