Big Backing for Perpetua After Breaking Ground at Stibnite
First investment under JPMorganChase’s US$1.5 trillion Security and Resiliency Initiative
Perpetua Resources Corp (NASDAQ/TSX: PPTA) has secured US$255 million in equity investments from Agnico Eagle Mines (TSX: AEM) and JPMorganChase for its Stibnite gold and antimony project in Idaho.
Agnico Eagle has agreed to invest US$180 million in shares and receive warrants to purchase up to 2.8 million shares priced at 35%, 50% and 65% premiums over one, two, and three-year periods, respectively.
JPMorganChase has agreed to invest US$75 million in shares and receive warrants to purchase up to 1.19 million shares priced at 35%, 50%, and 65% premiums over one, two, and three-year periods, respectively.
It represents the first investment made under JPMorganChase’s US$1.5 Trillion Security and Resiliency Initiative, announced earlier this month.
The initiative will see the firm make direct equity and venture capital investments of up to US$10 billion over the next decade to help select companies, primarily in the US, in industries critical to economic security and resilience.
Agnico Eagle will hold 6.5% of Perpetua, while JPMorganChase will hold 2.7%, on a non-diluted basis.
The placement was priced at US$23.30 per common share, in line with Perpetua’s closing price on the NASDAQ on Friday.
If fully exercised, the warrants could bring in an additional US$142 million.
Perpetua said the private placement was a better financing alternative for shareholders than pursuing a gold royalty or stream.
“The investments from Agnico Eagle and JPMorganChase are a vote of confidence in the Stibnite gold project and America’s critical mineral strategy,” Perpetua president and CEO Jon Cherry said.
“Investments from two leading, world-class institutions strengthens our capital position, reduces financing risk, and accelerates the development of one of the nation’s most strategic resource projects.”
Agnico Eagle and Perpetua expect to form a joint technical and exploration advisory committee to help advance Stibnite.
Agnico Eagle president and CEO Ammar Al-Joundi said Stibnite represented an excellent opportunity in a premier mining jurisdiction.
“Our investment in Perpetua aligns with Agnico Eagle’s commitment to disciplined and strategic investments through emerging and high-quality opportunities and provides measured exposure to one of the highest-grade open-pit gold deposits in the United States, with significant exploration upside,” he said.
Stibnite underway
Perpetua will use the proceeds of the placement, together with cash on hand and anticipated funding from the previously announced application for up to US$2 billion in project financing submitted to the Export-Import Bank of the United States (EXIM) in May 2025, for development of Stibnite.
The company is hoping to get approval for the EXIM funding in the first half of 2026.
Perpetua broke ground on the US$2.2 billion Stibnite project last week.
The company posted US$139 million in construction phase financial assurance for the project and received notice from the U.S. Forest Service that the requirements of the 2025 Record of Decision necessary to start construction had been satisfied and the Plan of Operations had been signed.
“As America’s answer to China’s antimony export bans, we are focused on swiftly and safely bringing our antimony and gold project into development,” Cherry said.
“After nine years of permitting, Stibnite can once again serve this country’s national interest.
“We are proud of our work to bring this essential project online to provide critical resources while restoring an abandoned mine site. With our reclamation performance bond to reclaim the work we undertake at the Project site in place, we officially started early works construction today and are making good on our promises to Idaho and America.”
Stibnite is expected to start production in 2029, producing 463,000 ounces of gold per year over the first four years at all-in sustaining costs of US$435 an ounce, net of by-product credits.
It is expected to be one of the highest-grade open pit gold mines in the US.
The project is expected to produce a total of 4.2 million ounces of gold and 107 million pounds of antimony over 15 years.
Using metal prices of US$2900/oz gold, US$31.50/oz silver and US$21 per pound of antimony, the project has a post-tax net present value (5% discount rate) of US$3.65 billion, internal rate of return of 27.1% and payback period of 2.2 years.