Perpetua Resources wins up to US$40M Army award for tungsten exploration
Perpetua must match the Army's contribution, while later exploration phases depend on results, permitting and further funding approvals.
Theo Marchetti
Perpetua Resources Corp. TSEPPTA NASDAQPPTA, listed on the Toronto Stock Exchange and Nasdaq, announced on Monday a U.S. Army award of up to US$40 million to evaluate tungsten production in Idaho. Perpetua must match the government's contribution, with an initial 18-month phase expected to cost approximately US$18 million, shared equally.
The 36-month agreement through the Army's Defense Ordnance Technology Consortium supports drilling, metallurgical testing and work on an exploration decline at Stibnite. Later phases require incremental funding approvals and depend on exploration, testing, engineering and permitting results.
Before the announcement, NASDAQPPTA closed at US$16.60, up 0.97 per cent, at 4 p.m. EDT on Oct. 26, according to Google Finance. That close preceded the release and does not show investors' response to the award.
Perpetua is redeveloping gold, antimony and silver deposits in central Idaho. The new program will assess whether tungsten concentrate production is technically and economically feasible; activity beyond the currently permitted mine plan requires additional regulatory review and permitting.
Funding Starts With Exploration And Testing
The Oct. 26 release says the initial work includes surface drilling to define a potential tungsten resource and laboratory and bench-scale metallurgical testing. An existing 550-kilogram sample grades 4.2 per cent tungsten and 9.2 per cent antimony.
The program also includes design, permitting and possible construction of a decline beneath the Hangar Flats pit. Construction remains conditional, and the release gives no date for tungsten production.
"Historical production and recent exploration results suggest Stibnite has the potential to be one of the world's highest-grade tungsten sources," Perpetua chief executive Jon Cherry said in the release.
Perpetua had outlined a tungsten grant proposal in its Aug. 6 exploration release. That release said any tungsten development would require separate public and environmental review and permitting outside the scope of the currently permitted project.
Alongside the Army program, Perpetua intends to continue its own exploration beneath Hangar Flats. Its Oct. 26 release identifies approximately 1.37 million ounces of gold resources and more than 95 million pounds of antimony resources outside the current mine plan and reported reserves.
Other developers are advancing domestic tungsten projects. Blue Moon Metals Inc. CVEMOON NASDAQBMM said on Oct. 26 it signed a refurbishment contract for its Springer processing plant in Nevada, with completion expected in the fourth quarter of 2027.
Read more: Blue Moon Metals signs Springer tungsten mill refurbishment contract
Warrants Now Expire In April
Perpetua separately disclosed on Oct. 26 amendments extending warrants exercisable for an aggregate of 1,607,802 common shares. The exercise prices are US$31.46 and US$38.93 a share.
The warrants previously expired on Oct. 28, Dec. 1 and Dec. 23, 2026. Perpetua said it relied on the TSX Company Manual exemption for eligible interlisted issuers to make the amendments.
The announcement does not identify warrant proceeds as financing for Perpetua's matching contribution. Its forward-looking assumptions include the company's ability to fund its share and receipt of government funding at the expected times and amounts.
The release provides no calendar deadline for the initial exploration results or later funding approvals. The amended warrants expire April 28, 2027, giving holders until that date to decide whether to exercise at the stated prices.
