Ivanhoe $200mn Santa Cruz copper project loan targets first cathodes by 2028

Ivanhoe Electric

The Ivanhoe $200mn Santa Cruz copper project loan boosts US copper development momentum. Ivanhoe Electric secured $200mn for its Santa Cruz copper project in Arizona. The Ivanhoe $200mn Santa Cruz copper project loan supports early construction and working capital. As a result, Ivanhoe aims to deliver Arizona copper cathodes by late 2028.

The loan comes from a three-bank group. National Bank Financial, Societe Generale, and BMO Capital Markets arranged a two-year facility. The interest rate starts at 8.8% and rises to 10.3% by term end. However, the structure signals lenders want near-term milestones and tighter execution control.

Project finance copper supports early works and de-risks the 2028 schedule

Ivanhoe will deploy the funding for early construction activities. The company will also cover working capital needs during development. Meanwhile, copper projects face long lead times for power, permitting, and equipment. Therefore, front-loaded capital can reduce schedule slippage.

The company targets first copper cathodes by the end of 2028. This timeline aligns with rising US copper supply urgency. As a result, the Santa Cruz project could attract more strategic interest from manufacturers.

Critical minerals funding talks continue with partners and EXIM options

Ivanhoe is still negotiating with potential minority partners. It is also engaging project debt providers for longer-term funding. Meanwhile, Export-Import Bank of the United States remains a potential lender for critical minerals. Therefore, the Ivanhoe $200mn Santa Cruz copper project loan may function as bridge financing.

EXIM has funded other US critical minerals initiatives. The article notes EXIM provided a $400mn loan in August 2024 to US Strategic Metals for a Missouri battery metals project. However, Ivanhoe will still need a durable capital stack beyond the two-year term. As a result, offtake-linked finance and strategic equity could become the next steps.

The Metalnomist Commentary

High coupon bridge debt shows copper developers must pay for speed. Meanwhile, lenders will reward projects that prove construction readiness and permitting certainty. Therefore, Ivanhoe should secure strategic partners that value US copper supply resilience.