Ivanhoe Electric Secures $200 Million Bridge Loan to Advance Santa Cruz Copper Mine
Ivanhoe Electric Secures Major Financing Boost as Santa Cruz Copper Project Advances Toward 2026 Construction
Ivanhoe Electric (NYSE-A, TSX: IE) has secured a $200 million bridge loan from a syndicate of major international banks, strengthening its financing plan for the development of what could become the next major U.S. copper mine.
In a statement on Thursday, the company announced that National Bank Capital Markets, Société Générale, and BMO Capital Markets are backing the loan, which Ivanhoe describes as “an important component” of the funding strategy for its Santa Cruz copper project in Arizona. Construction is targeted to begin in the first half of 2026.
Executive chairman Robert Friedland said the lenders’ approvals demonstrate strong confidence in the project, which he expects to become one of the first new U.S. copper mines in nearly 20 years.
“Santa Cruz is the first step in our vision to grow a new American-based and American-focused critical metals company,” Friedland said.
CEO Taylor Melvin added that the banks conducted extensive technical due diligence during the credit approval process. He noted that when the bridge loan closes—expected in December—Ivanhoe will have added more than $360 million in liquidity this quarter, placing the company in “an exceptionally strong financial position” as it enters a decisive development year for its flagship project.
Despite the financing milestone, Ivanhoe Electric’s share price slipped amid broader market declines. By 10:30 a.m. ET, the stock was down 3.9% at $12.81, giving the company a market capitalization of $1.88 billion.
A Long-Term U.S. Copper Producer in the Making
The Santa Cruz project, located in Casa Grande about 77 km south of Phoenix, hosts a sizeable underground copper deposit expected to support long-term production of copper cathodes. Ivanhoe has been advancing the project since 2022, identifying 3 million tonnes of indicated copper resources, roughly half of which are classified as mineable reserves.
Earlier this year, a new preliminary feasibility study (PFS) projected the operation as a 23-year mine capable of producing 72,000 tonnes of 99.99% pure copper cathodes annually during its first 15 years.
Using a base case copper price of $4.25 per lb., the PFS estimated:
After-tax NPV: $1.4 billion
Internal rate of return (IRR): 20%
Initial capital cost: $1.24 billion
Capital intensity: ~$17,000 per tonne of copper
Life-of-mine cash costs: $1.32/lb., placing Santa Cruz among the lowest-cost producers in the U.S.
Financing Pathway Continues to Take Shape
Ivanhoe Electric said it is continuing discussions with potential partners regarding project-level minority investments and long-term debt financing. One key party is the U.S. Export-Import Bank, which in April signaled potential support for an $825 million loan that could fund construction.
The company says it remains on track to meet its indicative timeline, with copper cathode production expected to begin in late 2028.
