Ivanhoe Electric Announces Closing of Public Offering and Exercise of Underwriter’s Option Aggregate Gross Proceeds from the Offering and the Exercise of the Underwriter’s Option are Approximately $69 Million PHOENIX, ARIZONA – Ivanhoe Electric Inc. (“Ivanhoe Electric”) (NYSE American: IE;
February 14, 2025
Ivanhoe Electric Announces Closing of Public Offering and Exercise
of Underwriter’s Option
Aggregate Gross Proceeds from the Offering and the Exercise of
the Underwriter’s Option are Approximately $69 Million
PHOENIX, ARIZONA – Ivanhoe Electric Inc. (“Ivanhoe Electric”) (NYSE American: IE;
TSX: IE) Executive Chairman, Robert Friedland and President and Chief Executive
Officer, Taylor Melvin are pleased to announce the closing on February 14, 2025 of the
previously announced underwritten public offering of 11,794,872 Units at a public
offering price of $5.85 per Unit, less underwriting discounts and commissions, which
includes the full exercise of the underwriter’s option to purchase an additional 1,538,461
Units. Each Unit consists of (i) one share of Ivanhoe Electric’s common stock and (ii)
one warrant to purchase an additional share of Ivanhoe Electric’s common stock for 12
months at an exercise price of $7.00 per share.
The aggregate gross proceeds from the offering and the exercise of the underwriters’
option are approximately $69 million, before deducting underwriting discounts and
commissions and estimated offering expenses payable by Ivanhoe Electric.
Ivanhoe Electric intends to use the net proceeds of the offering on the preliminary
feasibility study for the Santa Cruz Project, land acquisition payments, drilling and other
exploration activities and for other working capital and general corporate purposes.
BMO Capital Markets acted as sole book-running manager for 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 Units being offered in this
offering are being offered by means of a prospectus supplement and accompanying
prospectus relating to the offering that form a part of the registration statement. A final
prospectus supplement relating to the offering was filed with the SEC on February 12,
2025, and is available on the SEC’s website at http://www.sec.gov. Before investing in
this offering, you should read each prospectus supplement and the accompanying
prospectus relating to the offering in their entirety as well as the other documents that
Ivanhoe Electric has filed with the SEC that are incorporated by reference in the
prospectus supplement and the accompanying prospectus. Copies of the final
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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: [email protected].
A final MJDS prospectus supplement relating to the offering was filed with the securities
commissions or similar securities regulatory authorities in each of the provinces and
territories of Canada (except Québec) (the “Canadian Regulators”) on February 12, 2025
and is available under Ivanhoe Electric’s SEDAR+ profile at www.sedarplus.ca. Copies
of the final MJDS prospectus supplement and accompanying final base MJDS
prospectus relating to the offering may be obtained from the underwriter at the address
set out above and under Ivanhoe Electric's profile on SEDAR+ at www.sedarplus.ca.
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.
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 also
listed on the NYSE American and had less than 25% of the overall trading volume of its
listed securities occurring on all Canadian marketplaces in the period between February
10, 2024 and the date on which application was made to TSX to approve the offering.
About Ivanhoe Electric
We are a U.S. company that combines advanced mineral exploration technologies
(Typhoon™ and Computational Geosciences In c.) 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: [email protected]
Phone: 1-480-601-7878
Forward-Looking Statements
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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 risks and uncertainties related to market conditions and the
ability to consummate the offering and sale of Units, the ability to satisfy the closing
conditions to the offering and sale of Units; management’s discretion over the use of
proceeds of the offering; our mineral projects are all at the exploration stage and are
subject to the significant risks and uncertainties associated with mineral exploration;
we have no mineral reserves, other than at the San Matias project; 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 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;
we may not have sufficient cash and cash equivalents to maintain our planned
operations and may be unable to raise adequate additional capital through equity
financings or other means on favorable terms or at all; 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 final 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 final MJDS prospectus
supplement relating to this offering and accompanying final base MJDS prospectus
filed with the Canadian Regulators. Ivanhoe Electric expressly disclaims any obligation
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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.