Ivanhoe Electric Announces Public Offering of Units
February 11, 2025
Ivanhoe Electric Announces Public Offering of Units
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 that Ivanhoe Electric intends to sell
US$50 million of Units in an underwritten public offering. Each Unit consists of (i) one
share of Ivanhoe Electric’s common stock and (ii) one accompanying warrant (the
“Warrants”), with each whole Warrant exercisable to purchase one whole share of
Ivanhoe Electric’s common stock. In addition, Ivanhoe Electric intends to grant the
underwriters a 30-day option to purchase up to an additional US$7.5 million of Units.
The offering is subject to market and other conditions, and there can be no assurance
as to whether, or when, the offering may be completed or as to the actual size or terms
of the offering.
Ivanhoe Electric intends to use the net proceeds of the offering for a preliminary
feasibility study on the Santa Cruz Project, mineral rights 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 (including a prospectus) 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. This offering will
be made only by means of a prospectus. Before investing in the offering, you should
read the prospectus relating to the offering in its entirety as well as the other
documents that Ivanhoe Electric has filed with the SEC that are incorporated by
reference in the prospectus. Copies of the preliminary prospectus supplement, when
available, and accompanying prospectus relating to the offering may be obtained for
free on the SEC’s website, www.sec.gov, or from BMO Capital Markets Corp., Attn:
Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036,
email: [email protected].
Ivanhoe Electric also obtained a receipt for a final base prospectus filed pursuant to the
multi-jurisdictional disclosure system (“MJDS”) with the securities commissions or
similar securities regulatory authorities in each of the provinces and territories of
Canada (except Québec) on July 20, 2023. Copies of the preliminary 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 terms 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.