Deterra Deepens Copper Exposure with Santa Cruz Royalty Deal

Deterra Royalties has made a significant move in its bid to diversify its portfolio by acquiring a royalty over Ivanhoe Electric's Santa Cruz copper project in Arizona for $US74.15 million ($A106.6m).

The acquisition gives Deterra an existing net smelter return (NSR) royalty covering a substantial portion of Santa Cruz, a large-scale underground copper development targeting first production in 2029.

Approximately 84% of Santa Cruz's recently announced Mineral Reserves are within the royalty area. At the project's planned production rate and assuming a long-term copper price of $US5 per pound, Deterra estimates average annual royalty revenue of approximately $US10.7 million over the first 15 years.

The transaction establishes Santa Cruz as Deterra's third core asset alongside its Thacker Pass lithium royalty and cornerstone Mining Area C iron ore royalty.