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Investing.com -- Shares of Ivanhoe Electric Inc. (NYSE: IE; TSX: IE) leaped 13.9% in premarket trading following the announcement that the company has received a Letter of Interest for up to $825 million in financing from the Export-Import Bank of the United States (EXIM Bank) for its Santa Cruz Copper Project in Arizona. The financing, which aligns with the EXIM Bank’s Make More in America initiative, highlights the project’s strategic importance in enhancing the domestic copper supply.
The Santa Cruz Copper Project is seen as a critical development in the United States’ efforts to increase the domestic supply of critical minerals, fostering economic growth and strengthening national security. The potential financing from EXIM Bank would be provided through its Make More in America initiative, aimed at boosting the competitiveness of the U.S. and reducing strategic vulnerabilities by strengthening supply chains through domestic resource production.
Executive Chairman Robert Friedland emphasized the project’s significance in meeting the urgent need for more domestically produced copper, which is essential for the expansion and rebuilding of the U.S. electric transmission and transportation infrastructure, national defense capabilities, and future technologies. President and CEO Taylor Melvin expressed gratitude for the EXIM Bank’s support, which could help advance the project’s final engineering and permitting efforts toward initial construction slated for the first half of 2026.
The Santa Cruz Copper Project is on track to complete its Preliminary Feasibility Study by June 2025, which will support project financing activities. Ivanhoe Electric is also exploring additional government support programs, such as the Supply Chain Resilience Initiative and the Section 45X advanced manufacturing production tax credit, to further strengthen its development plans.
The EXIM Bank’s Letter of Interest is subject to due diligence, underwriting criteria, authorization processes, and compliance with EXIM Bank policies and legal requirements. The final lending commitment will depend on the satisfaction of these terms and conditions. Ivanhoe Electric continues to assess this interest alongside other financing alternatives for the development of the Santa Cruz Copper Project, which is poised to play a pivotal role in strengthening U.S. copper supply chain independence.
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