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Friday, May 30, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Perpetua Resources awarded another US$6.9M to advance Stibnite gold-antimony project
Perpetua Resources awarded another US$6.9M to advance Stibnite gold-antimony project
The U.S. military needs antimony for precision optics and laser sighting, ammunition, communications equipment and much more. Image credit: Perpetua Resources

Mining

Perpetua Resources awarded another US$6.9M to advance Stibnite gold-antimony project

The American government wants this Idaho resource dug up as soon as possible for national security

Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA) continues to receive millions from the United States government and its military branches as demand for antimony in the country reaches unprecedented levels.

This week, the Idaho mining company revealed that the U.S. Army has just agreed to provide the company with up to US$6.9 million. It will be allocated to setting up a pilot processing plant that will produce military-grade antimony trisulfide. This particular product, derived from stibnite ore, is known to be used for ammunition primers, explosives and flares.

“Antimony trisulfide is an essential and non-replaceable component to over 300 types of munitions, making it important to source in America,” said Colonel Steven Power from the Picatinny Arsenal military base in New Jersey.

The financing builds on US$75 million already received for the Stibnite gold-antimony project via Department of Defense national security initiatives.

Last week, Perpetua received the final federal permit needed for the operation. Only a few state level permits need to be obtained now before construction begins. To secure the majority of funding needed for the massive undertaking, the metal and mineral miner has submitted a formal application for US$2 billion in debt financing to the Export-Import Bank of the United States.

Donald Trump and friends in the White House have given the site a special national security designation to help fast-track it into production. This phase is expected to commence within the next few years once financing has been squared away and construction work has been completed.

The past-producing mine site has been shut down since 1997. Decades before that, it was an essential source of antimony for the allies during World War 2. Its resources were also a necessity during the Korean War in the early 1950s, less significantly.

Read more: NevGold raises $5M for promising gold-antimony prospects in Nevada

Only U.S. antimony resource of scale, will fulfill up to 35% of domestic demand

Demand for this commodity in the United States has been soaring since December when China cut off its exports to the country. Its price has also risen dramatically over the past year.

Belgian metals recycling company Campine NV (EBR: CAMB) highlighted the significance of this supply shortage in a press release on Tuesday.

“Due to export restrictions in China since the fall of 2024, Campine and other suppliers benefit from a considerable surge in demand,” the company stated. Campine has forecasted that its sales revenue and EBITDA will increase by over 100 per cent year-over-year by the end of H1 as a result.

Campine was just mentioned as a key market player in a report predicting that the global antimony market will be valued at about US$1.6 billion more than its current valuation by 2034.

The current bull market for this strategic mineral has prompted many junior mining companies to enhance their focus on antimony exploration and review historic results from when the commodity was less attention-worthy.

NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), a company developing and exploring a promising antimony-gold resource in Nevada, is a standout. The junior just secured a US$6-million-dollar brokered private placement to fund its activities at the Limousine Butte project.

Favourable assay results have been continually coming out of the site.

Read more: NevGold’s Nevada property may just be the next American antimony resource of scale

 

NevGold is a sponsor of Mugglehead news coverage 

 

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