Ivanhoe Electric Announces Pricing and Upsizing of Public Offering
February 11, 2025
Ivanhoe Electric Announces Pricing and Upsizing of Public
Offering
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 pricing of an
underwritten public offering of 10,256,411 units (the “Units”) at a public offering
price of US$5.85 per Unit. Each Unit consists of (i) one share of Ivanhoe Electric’s
common stock and (ii) one accompanying warrant (the "Warrants"). Each whole
Warrant is exercisable to purchase one share of Ivanhoe Electric’s common stock
at a price of US$7.00 per share, exercisable for a period of 12 months. The shares
of common stock and warrants will be issued separately but can only be
purchased together in the Offering. The gross proceeds from the offering are
expected to be approximately US$60 million, before deducting underwriting
discounts and commissions and estimated offering expenses payable by Ivanhoe
Electric. In addition, Ivanhoe Electric has granted the underwriters a 30-day
option to purchase up to an additional 1,538,461 Units, shares of common stock
and/or Warrants.
The offering is expected to close on February 14, 2025, subject to customary
closing conditions.
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 is acting 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 shares 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 preliminary prospectus supplement relating to the
offering was filed with the SEC on February 11, 2025, and is available on the
SEC’s website at http://www.sec.gov. The final prospectus supplement relating to
and describing the terms of the offering will be filed with the SEC and will also be
available on the SEC’s website. Before investing in the 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 prospectus
supplement, when available, 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:
A preliminary 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 11, 2025 and is available under Ivanhoe Electric's
SEDAR+ profile at www.sedarplus.ca. The final MJDS prospectus supplement
relating to and describing the terms of the offering will be filed with the
Canadian Regulators and copies of the final MJDS prospectus supplement, when
available, and accompanying final base MJDS prospectus relating to the offering
may be obtained from the underwriters at the addresses set out above and will be
available 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.
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: [email protected]
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 expected
closing date and consummation of the offering and 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
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.