Ivanhoe Electric, Ma’aden formally establish exploration JV

Ivanhoe Electric announced the closing of the transactions with Saudi Arabian Mining Company Ma’aden. Ma’aden has invested $127.1 million in new common stock of Ivanhoe Electric to become a 9.9% shareholder. Ivanhoe Electric will contribute $66 million of the Ma’aden proceeds into the new Saudi Arabian exploration joint venture company known as “Ma’aden Ivanhoe Electric Exploration and Development Limited Company” to fund exploration activities and the purchase of three new-generation Typhoon machines. The Joint Venture will deploy the disruptive power of Typhoon to explore ~48,500 km2 of underexplored lands in the Arabian Shield that Ma’aden has made exclusively available to the Joint Venture. One of Ivanhoe Electric’s existing three proprietary Typhoon geophysical surveying systems is expected to arrive in Saudi Arabia in August. Surveying programs could commence as soon as September of this year. Once Typhoon arrives in country, our joint Technical Committee will begin the extraordinary task of surveying for geophysical anomalies, potentially indicative of sulfide mineral deposits containing copper, nickel, gold and silver, over ~48,500 km2 of underexplored Arabian Shield. The Technical Committee has been working ahead of closing in order to prioritize targets for initial Typhoon surveys so that survey work can commence as soon as possible. Ivanhoe Electric has issued 10,269,604 shares of common stock to Ma’aden, representing 9.9% of the common stock outstanding following the issuance of the new shares to Ma’aden. The new shares were issued at a purchase price of $12.38 per share for gross proceeds of $127.1 million. $66 million of the proceeds will be contributed by Ivanhoe Electric to the Joint Venture to fund its activities. The remaining $61.1 million, net of appliable fees and expenses, will be used by Ivanhoe Electric to advance its US mineral projects, for working capital and general corporate purposes. Ivanhoe Electric has granted Ma’aden a top-up right allowing Ma’aden to maintain its 9.9% ownership. Ma’aden has agreed to a five-year standstill limiting its shareholding to a maximum of 19.9%, subject to certain exceptions. The strategic investment by Ma’aden has been approved by the Toronto Stock Exchange in reliance upon the exemption described in Section 602.1 of the TSX Company Manual, which is available to certain “eligible interlisted issuers” that have less than 25% of their overall trading volume on Canadian marketplaces. Sofia Bianchi has been appointed as Ma’aden’s nominee to Ivanhoe Electric’s Board of Directors, bringing the Company’s board size to nine members.