#United States #Boise #Perpetua Resources #Stibnite Gold Project #financing package

Perpetua Resources Secures $300 Million Financing for Stibnite Gold Project

In a robust move towards advancing its goals, Perpetua Resources Corp. (Nasdaq: PPTA) has today announced a comprehensive financing initiative totaling approximately $300 million. This strategic financial package, which includes a bought deal financing and a private placement, is designed to propel the development of the highly anticipated Stibnite Gold Project located in Idaho.

Details of the Financial Package

The Company has entered into an agreement with National Bank of Canada Financial Markets and BMO Capital Markets, which will facilitate the purchase of 22,728,000 common shares at a price of $13.20 each. This endeavor is set to yield gross proceeds of about $300 million. Additionally, the agreement includes a private placement of $100 million, primarily involving Paulson Co. Inc., which further underscores investor confidence in Perpetua Resources' vision and strategy.

Purpose of the Financing

The funds raised through this offering will significantly contribute to the Company’s equity requirements for a larger project financing of up to $2 billion, which is currently under review by the Export-Import Bank of the United States (EXIM). The financing aims to cover various costs associated with the construction and operational phases of the Stibnite Gold Project, anticipating a total investment of around $2.2 billion. The strategic allocation of these funds will also lend support to exploration activities and working capital needs as the Company embarks on this extensive project.

Strategic Partnerships and Guarantees

To ensure its operational robustness, Perpetua is also in discussions with potential partners to secure guarantees that would satisfy financial assurance requirements mandated by federal and state laws. Specifically, the Company seeks a $155 million guarantee which is pivotal for the reclamation obligations tied to the project, alongside securing additional funds ranging between $200 million to $250 million in exchange for a gold net smelter return (NSR) royalty, capped at 3.9%. Such arrangements are expected to substantially bolster the Company’s financial positioning and credibility among investors.

Timeline and Future Expectations

The anticipated timeline for the closure of this financing is set for June 16, 2025, subject to customary conditions. Should the underwriters opt to purchase additional common shares, the gross proceeds could potentially rise to $345 million, facilitating an expedited start on the construction of the project. Moreover, successful completion of due diligence by EXIM is crucial, with expectations of securing necessary approvals by 2026. This would set the stage for construction to commence later this year, contingent upon achieving all regulatory permits.

About the Stibnite Gold Project

The Stibnite Gold Project is distinguished as one of the highest-grade open-pit gold deposits in the United States. Perpetua Resources is committed to employing responsible mining practices to restore the abandoned mine site while producing both gold and the only domestic sources of antimony, central to U.S. defense materials. The project not only promises significant economic benefits but also aims at creating local employment opportunities while adhering to environmental sustainability principles.

Investors remain cautiously optimistic as the Company forges ahead with its ambitious plans. The forthcoming months will be crucial in determining the trajectory of the Stibnite Gold Project, which is set to play a pivotal role in the domestic minerals supply chain, particularly concerning antimony, a critical resource in defense applications.

Conclusion

Perpetua Resources Corp. is poised for an exciting future with significant developments on the horizon for the Stibnite Gold Project. As it works diligently towards attaining funding and necessary regulatory approvals, the anticipation among investors and stakeholders continues to grow, marking a promising chapter in the Company’s endeavors to lead responsible mining practices and bolster national security initiatives through local resource production.