Ivanhoe Electric to Acquire 6,205 Acres of Private Land at the Santa Cruz Copper Project Near Casa Grande, Arizona Strategic Land Acquisition Includes Associated Water Rights Ivanhoe Electric Now Has Agreements in Place to Own a Complete
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May 11, 2023
Ivanhoe Electric to Acquire 6,205 Acres of Private Land at the Santa
Cruz Copper Project Near Casa Grande, Arizona
Strategic Land Acquisition Includes Associated Water Rights
Ivanhoe Electric Now Has Agreements in Place to Own a Complete
Private Land Package and Mineral Rights Encompassing the Entire
Santa Cruz Project
PHOENIX, ARIZONA – Ivanhoe Electric (NYSE American: IE; TSX: IE) Executive
Chairman, Robert Friedland and President and Chief Executive Officer, Taylor Melvin
are pleased to announce the signing of a binding Purchase and Sale Agreement (“PSA”)
with Wolff-Harvard Ventures LLC (“Seller” a.k.a. “Legends Property”) for the acquisition
of surface land at its Santa Cruz Copper Project in Casa Grande, Arizona. The
acquisition totals 6,205 acres of surface title and associated water rights.
Ivanhoe Electric also 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.
Mr. Friedland commented: “Acquiring the surface land at our Santa Cruz Project is a
significant step towards realizing our vision of developing a high-grade, low carbon
dioxide footprint underground copper mine on private land. We are designing our Santa
Cruz Project to be a modern, responsible underground mining operation that will
employ a skilled workforce and provide an economic boost to Arizona’s growing
industrial economy while supporting supply chain independence in the United States
for electric metals. The large area of flat land that we are acquiring is ideally suited for
renewable solar energy, which we plan to utilize to power our Santa Cruz Project. This
important transaction is the culmination of our hard work to reunite the surface land
with the subsurface mineral rights we already have the option to acquire, giving Ivanhoe
Electric control of a large, high-grade copper project on private land in the Copper
State.”
Mr. Melvin commented: “This agreement is a major milestone for our Santa Cruz
Project. Acquiring such a large area of private land and associated water rights, in the
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heart of a growing industrial area near Casa Grande with excellent access to
infrastructure including nearby rail, highways and electric transmission lines, is a
tremendous advantage for Ivanhoe Electric. Acquiring this land gives our team the
flexibility they need to design and develop a minimally disruptive, efficient and modern
underground copper mining operation, and provides significant potential for on-site
solar power. This land will be a valuable long-term asset for the future of the Santa Cruz
Project and our company.”
Video footage of the Santa Cruz Copper Project, located just west of Casa Grande and
approximately 40 miles south of Phoenix, Arizona. Click on the image below for the
high-resolution video.
Terms of the Legends Land Acquisition
Under the terms of the PSA, Ivanhoe Electric will acquire 6,205 acres for a total
purchase price of $120.5 million to be paid in installments over a 4.5-year period, as
follows:
• $5.0 million deposit, paid upon signing of the PSA;
• $34.3 million payable at the time of closing, expected in May, inclusive of the $5.0
million deposit (the “First Closing Payment”);
• $34.3 million, plus accrued interest, payable on or before six months following
the date of closing (the “Second Closing Payment”);
• Four equal principal payments of $13.0 million on the first, second, third and
fourth anniversaries of the Second Closing Payment, plus applicable accrued
interest.
Interest on future payments will accrue at a rate of Prime plus 1%. In the event that
Ivanhoe Electric elects to begin mine construction prior to completing the final principal
payment, the full outstanding balance shall be paid to Seller prior to commencement of
major mine construction activities.
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Map of land being acquired at the Santa Cruz Copper Project, Casa Grande,
Arizona
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Map showing the substantial regional infrastructure located near the Santa Cruz
Copper Project, Casa Grande, Arizona
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Drill site location at the Santa Cruz Copper Project, Casa Grande, Arizona
Christopher Seligman, Principal Development Geologist, examining core
samples at the Santa Cruz Copper Project
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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
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.
Such statements in this news release include, without limitation: statements regarding the final
terms and conditions, potential satisfaction of closing conditions and closing of the strategic
land transactions; the schedule of payments; the anticipated benefits of the transactions; the
development of the Santa Cruz Project and the potential benefits thereof.
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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.