Ivanhoe Electric (NYSE American: IE) (TSX: IE) has finalized its acquisition of full ownership of the mineral rights for the Santa Cruz copper project in Arizona, marking a significant achievement for the company. This milestone follows the completion of the final payment under a purchase option agreement. In May 2023, Ivanhoe Electric secured nearly 6,000 acres of surface title and associated water rights for approximately $116 million. This transaction also included an option to acquire the contiguous mineral rights.

On Tuesday, Ivanhoe Electric made the final $10 million payment, granting the company 100% ownership of these mineral rights. With this acquisition, Ivanhoe Electric now controls both the surface and mineral rights for the Santa Cruz project. This full ownership represents a crucial step in the company's strategic goals.

Taylor Melvin, CEO of Ivanhoe Electric, emphasized the importance of this achievement. "Completing our option agreement and securing 100% ownership of the mineral rights at our Santa Cruz copper project in Arizona is an important milestone for our company," Melvin stated in a press release. "We have now completed the consolidation of surface and mineral rights ownership at one of the largest and highest grade undeveloped copper resources in the United States, which is located entirely on private land."

The Santa Cruz project is notable for its substantial resource base, with 26.7 million tonnes of indicated resources at a grade of 1.24% total copper, translating to 2.8 million tonnes of contained copper. Additionally, it has 149.0 million tonnes of inferred resources, also grading 1.24% total copper, equivalent to 1.8 million tonnes of contained copper. An initial assessment of the project conducted in 2023, focusing on a limited surface footprint for an underground copper mine, projected a total copper production of 1.6 million tonnes over a 20-year mine life. The cash costs for copper production are estimated at $1.36 per pound.

The project is also designed with environmental considerations in mind. It aims to minimize surface land disruption and incorporate sustainable practices. The base case for the project anticipates that 70% of the required electric power will be sourced from onsite renewable energy infrastructure, significantly reducing carbon dioxide equivalent emissions.

Ivanhoe Electric is a U.S. based company specializing in cutting-edge mineral exploration technologies and electric metals projects primarily within the United States. The company utilizes its advanced Typhoon™ geophysical surveying system in conjunction with sophisticated data analytics from its subsidiary, Computational Geosciences Inc., to streamline and mitigate risks in the mineral exploration process. This approach aims to uncover new deposits of critical metals that traditional exploration methods might miss.