Perpetua Resources (NASDAQ, TSX: PPTA) has successfully secured $400 million in equity financing to support the development of its Stibnite project in Idaho. The company entered into an agreement with National Bank of Canada and BMO Capital Markets, which will purchase approximately 22.73 million common shares of Perpetua at $13.20 per share for a total of $300 million. In addition, Paulson & Co. has committed to buying an additional $100 million in common shares through a private placement.
The financing will be used to advance the Stibnite project, which is being fast-tracked by the Trump administration. This comes alongside the company’s application for up to $2 billion in project financing, submitted to the Export-Import Bank of the United States (EXIM) in May. Perpetua also received final federal approval in May for the last permit required to move the project towards construction.
Aiming for $2.2 Billion in Project Financing
With the combined proceeds from the equity financing and EXIM debt financing, Perpetua Resources believes it will have enough capital to cover the construction costs of the $2.2 billion Stibnite project, as well as additional funds to address cost overruns and exploration activities. The company is also confident that the remaining state permits required for construction will be issued by relevant agencies by summer 2025.
Strategic Importance of Stibnite’s Antimony Reserves
The Stibnite project is uniquely positioned to supply the critical mineral antimony, which plays a crucial role in national security and energy technologies. The project holds an estimated 148-million-pound antimony reserve — the only known antimony reserve in the United States and one of the largest outside of Chinese control. Once in production, the project could meet approximately 35% of U.S. antimony demand during its initial six years of production, according to the 2023 U.S. Geological Survey (USGS) commodity summary.
Market Reaction and Outlook
Perpetua Resources closed flat at Wednesday’s market close in New York, but saw a 9.8% decline in after-hours trading. The company currently holds a market capitalization of $1.1 billion.
The successful equity financing marks a significant milestone for Perpetua Resources as it moves forward with the development of a project that is vital to both domestic resource security and clean energy infrastructure. The company’s progress, backed by both federal approval and private investment, positions the Stibnite project as a critical asset in the global minerals supply chain.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
