Ivanhoe Electric Closes Acquisition of Private Land at the Santa Cruz Copper Project in Arizona Ivanhoe Electric Now Has Control Over Surface Land and Mineral Rights Encompassing the Entire Santa Cruz Project
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@robert_ivanhoe
@ivanhoeelectric
www.ivanhoeelectric.com
May 23, 2023
Ivanhoe Electric Closes Acquisition of Private Land at the Santa
Cruz Copper Project in Arizona
Ivanhoe Electric Now Has Control Over Surface Land and Mineral
Rights Encompassing the Entire Santa Cruz Project
PHOENIX, ARIZONA – Ivanhoe Electric (NYSE American: IE; TSX: IE) announces today
the closing of its previously disclosed private land acquisition at its Santa Cruz Copper
Project in Casa Grande, Arizona. The terms of the Purchase and Sale Agreement
(“PSA”) for the acquisition of surface title and associated water rights are described in
Ivanhoe Electric’s May 11, 2023, news release.
Taylor Melvin, Ivanhoe Electric’s President and Chief Executive Officer, commented:
“We are excited to close our previously announced land acquisition at our Santa Cruz
Copper Project in Arizona. Acquiring this land is a major milestone in the advancement
of our Santa Cruz Project, where we already have agreements in place to control all the
mineral rights associated with the acquired surface land. The land acquisition puts us in
excellent position to finalize our initial economic assessment, which we expect to
release in the third quarter of this year.”
The final purchase price has been reduced by $3.63 million compared to the amount
previously disclosed to reflect an adjustment to the final acreage being acquired. The
adjustment to the total acreage acquired of 5,975 acres is a result of final land surveys
completed in the normal course of confirmatory due diligence.
At closing, Ivanhoe Electric paid a total of $34.3 million to the seller, which includes $5.1
million of previously paid deposits. Ivanhoe Electric has also issued a secured
promissory note to the seller in the principal amount of approximately $82.6 million over
a period of 4.5 years. The promissory note includes an annual interest rate of prime plus
1%.
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Ivanhoe Electric holds the option to acquire all the mineral titles contiguous with the
acquired surface lands. Those mineral rights will be formally acquired upon the
completion of scheduled payments by Ivanhoe Electric to the current mineral title
holder in August 2023 and 2024. At that time, Ivanhoe Electric will have a unified land
and mineral package encompassing the entire Santa Cruz Project.
Map of the 5,975 acres of private land acquired at the Santa Cruz Copper Project,
Casa Grande, Arizona.
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About Ivanhoe Electric
Ivanhoe Electric is an American technology and mineral exploration company that is re-
inventing mining for the electrification of everything by combining advanced mineral
exploration technologies, renewable energy storage solutions and electric metals
projects predominantly located in the United States. Ivanhoe Electric uses its
Typhoon™ transmitter, an accurate and powerful geophysical survey system, together
with advanced data analytics provided by its subsidiary, Computational Geosciences
Inc., to accelerate and de-risk the mineral exploration process as well as to potentially
discover deposits of critical metals that may otherwise be undetectable by traditional
exploration technologies. Through its controlling interest in VRB Energy, Ivanhoe
Electric also develops and manufactures advanced grid-scale vanadium redox battery
storage systems. Finally, through advancing its portfolio of electric metals projects
located primarily in the United States, headlined by the Santa Cruz Copper Project in
Arizona and the Tintic Copper-Gold Project in Utah, as well as projects in Montana,
Nevada, Oregon and North Carolina, Ivanhoe Electric is also well positioned to support
American supply chain independence by delivering the critical metals necessary for
electrification of the economy.
Contact Information
Investors: Valerie Kimball, Director, Investor Relations 720-933-1150
Follow us on Twitter
Ivanhoe Electric’s Executive Chairman Robert Friedland: @robert_ivanhoe
Ivanhoe Electric: @ivanhoeelectric
Forward-Looking Statements
Certain statements in this news release constitute “forward-looking statements” or “forward-
looking information” within the meaning of applicable US 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 the company, 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”
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 the
company’s current expectations regarding future events, performance and results and speak
only as of the date of this news release.
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Such statements in this news release include, without limitation: the schedule of payments; the
development of the Santa Cruz Project and the potential benefits thereof.
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 uncertainties as to the timing
of closing the transaction, including the potential failure to close; the Company’s ability to
complete due diligence on the timeline or at all; the satisfaction of conditions to closing; the risk
that the Company cannot complete the payments owed; 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 US
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 the company 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 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, the company 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.