BHP, Ivanhoe Launch $15M Copper Hunt in US Southwest

Key Takeaway

• BHP and Ivanhoe Electric form a mining alliance targeting copper exploration in Arizona, New Mexico, and Utah across 1410 square miles.
• The partnership plans a two-phased approach with BHP funding $15 million for the initial phase and utilizing Ivanhoe's Typhoon system for deep exploration.
• This collaboration aims to secure new sources of critical minerals essential for the energy transition and electrification revolution.

Strategic Mining Alliance Formed

Ivanhoe Electric Inc. and BHP have entered into a definitive Exploration Alliance Agreement to accelerate the search for copper and other critical minerals in the United States, essential for the energy transition and electrification revolution. The alliance focuses on six areas of interest across Arizona, New Mexico, and Utah, covering approximately 3,655 square kilometers. This partnership marks a significant step towards tapping into the untapped mineral wealth of the United States, leveraging advanced exploration technologies.

Innovative Exploration Technologies Deployed

The alliance will utilize Ivanhoe Electric's proprietary Typhoon™ geophysical survey system and Computational Geosciences' (CGI) machine learning algorithmic software for exploration. Typhoon™, capable of penetrating more than 1.5 kilometers underground, will play a crucial role in identifying deep geophysical anomalies and sulfide minerals containing copper, nickel, gold, and silver. This technology is particularly suited for exploring areas where younger, unmineralized cover overlays older, prospective geology, potentially leading to the discovery of significant mineral deposits.

Funding and Operational Structure

BHP will provide initial funding of $15 million over a three-year term, with any subsequent funding split equally between the two companies. The alliance will operate in two phases: a Project Generation Phase and a Joint Venture Phase, with Ivanhoe Electric leading the exploration efforts during the initial phase. The partnership aims to identify and stake mineral rights within the areas of interest, forming projects that may become 50/50 owned joint ventures. The Alliance Management Committee, composed of equal representatives from both companies, will oversee the exploration process.

Management Quotes

• Taylor Melvin, CEO of Ivanhoe Electric:

  "We see today's announcement as the first step in what we expect to be a long and successful partnership between Ivanhoe Electric and BHP."

• Robert Friedland, Founder and Chairman of Ivanhoe:

  "BHP and Ivanhoe Electric have a common goal to find new sources of the critical minerals necessary to meet growing demand associated with the energy transition and the electrification revolution."