Perpetua Resources Partners with Sunshine Silver for Antimony Supply Chain Innovations

Strategic Partnership to Boost U.S. Antimony Supply Chain

On December 9, 2024, Perpetua Resources Corp., trading on Nasdaq and TSX as PPTA, announced a major strategic partnership with Sunshine Silver Mining and Refining Company. This collaboration aims to significantly enhance the domestic supply chain for antimony, a critical mineral for various technologically advanced applications and national security.

Key Details of the Partnership

The partnership, formalized through a non-binding Memorandum of Understanding (MOU), aims to explore the feasibility of utilizing Sunshine Silver's permitted antimony processing plant to refine concentrates sourced from both the Stibnite Gold Project and Sunshine Silver's facilities. Initial assessments suggest that this collaboration could potentially satisfy up to 40% of the annual antimony demand in the U.S.

Jon Cherry, President and CEO of Perpetua Resources stated, "This MOU with Sunshine Silver marks a significant step towards developing a fully integrated American antimony supply chain." The Stibnite Gold Project is noted as the only identified domestic reserve of antimony, with federal approvals currently pending. Cherry emphasized the importance of this collaboration in helping secure domestic production crucial for the U.S.

Heather White, CEO of Sunshine Silver, echoed this sentiment, asserting that a robust American supply chain for antimony is essential for both national and economic security. The companies plan to leverage the MOU to construct an end-to-end supply framework, utilizing Sunshine's historical expertise as a high-grade antimony producer.

Anticipated Impact on Domestic Antimony Production

Antimony is integral for various applications, ranging from defense munitions to clean energy technologies, including solar panels and wind turbines. Currently, the U.S. relies heavily on imports for this key mineral, a situation highlighted by recent developments. On December 3, 2024, China announced an enhanced export ban on antimony to the United States, following earlier restrictions introduced in August of the same year. Given that China controls a significant share of the global antimony market, these developments have raised alarms about the U.S.'s long-term supply security.

With approximately 148 million pounds of antimony reserves, the Stibnite Gold Project is critical in meeting U.S. antimony demand. Initial projections suggest that once operational, the project could fulfill around 35% of the expected demand in its first six years, with a significant contribution anticipated from Sunshine’s operations. This could position both companies at the forefront of the market for this essential mineral.

Environmental and Economic Considerations

The Stibnite Gold Project holds promise not only for antimony production but also for addressing environmental legacy issues from over a century of mining activities in the area. The project plans to restore ecological integrity while producing valuable metals. This approach aligns with the U.S. Forest Service's broader goals concerning responsible land use and environmental stewardship.

Perpetua Resources has positioned the Stibnite Gold Project as a leader in sustainable mining practices, emphasizing reduced carbon emissions through an energy-efficient infrastructure, which is projected to be one of the lowest carbon grids in the nation.

The project is also poised to support the U.S. transition to lower-carbon technologies by supplying critical materials for innovations like liquid metal batteries. This aligns with the commitments outlined under the Defense Production Act, which dedicates funding toward advancing domestic supply chain capabilities for essential minerals.

As the industry moves forward, both Perpetua Resources and Sunshine Silver are gearing up for a pivotal phase in U.S. resource management. The strategic partnership not only aims to secure a supply of antimony domestically but also establishes a framework for collaboration in addressing the greater challenges surrounding mineral extraction, production, and sustainability in the U.S.