Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA) has secured a US$425-million-dollar financing through a combination of an underwritten bought deal offering and private placement. On Wednesday, the National Bank of Canada (TSE: NA) (OTCMKTS: NTIOF) (FRA: NBC) and BMO Capital Markets agreed to purchase 24.62 million common shares at US$13.20 apiece on behalf of themselves and a group of underwriters.
On Thursday, the underwriters were given the option to purchase an additional 3.69 million shares within 30 days, potentially bringing the total raised by them to US$374 million. Furthermore, the American investment firm Paulson & Co is investing US$100 million, buying shares at the same price as the banks and underwriters.
Funds will be utilized to propel development of the Stibnite gold-antimony project. Also, to meet requirements necessary to receive approval for a US$2-billion-dollar debt financing package from the Export-Import Bank of the United States.
Despite obtaining more funding for the Idaho mining project, dilution from the significantly increased number of outstanding shares sent stock down by over 20 per cent during early trading hours on Thursday.
“Ouch!” commented renowned mining analyst Paul Harris. “Perpetua gives investors a 20 per cent buzzcut with US$300M bought deal pricing. Recent bought deals have averaged an 8.5 per cent discount.”
The latest financing builds on US$6.9 million provided by the U.S. Army last month and US$74.6 million from the Department of Defense since the end of 2022.
Last month, Perpetua acquired the last necessary federal permit needed to commence construction at the Idaho property. And on Jan 3, the U.S. Forest Service gave a positive Final Record of Decision for Stibnite following a rigorous evaluation process.
Construction costs for the large-scale mining operation are expected to total US$2.2 billion. It is estimated to contain 148 million pounds of antimony and will be capable of catering to more than one third of American demand.
The price of antimony has skyrocketed over the past year with demand soaring even more at the end of 2024 due to China implementing strict export controls. The nation has a monopoly on the commodity, other critical minerals, and rare earth elements.
Read more: NevGold pulls up even more promising antimony grades from Nevada property
Australian junior miner set to acquire adjacent site
Perpetua will soon have a new next-door neighbour at the Stibnite Au-Sb site.
This week, Resolution Minerals Ltd (ASX: RML) announced that it will be acquiring the Horse Heaven project directly west of Perpetua’s work area. This project has immense antimony production potential as well with similar geology and mineralization.
The proximity to Perpetua and imperative need for domestic sources of antimony should intrigue investors and government agencies in the U.S. like Stibnite has.
Aside from Idaho, the state of Nevada has been attracting attention for its antimony resources this year.
Mining companies in the state like Xtra Energy Ord Shs (OTCMKTS: XTPT), NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) and Military Metals Corp (CNSX: MILI) (OTCMKTS: MILIF) (FRA: QN90) have some of the most intriguing future production prospects in the entire country. Recent American antimony mining news has primarily been coming out of these two states.
However, United States Antimony Corp (NYSEAMERICAN: UAMY), a company with the only U.S. antimony smelter in Montana, has also been pulling the spotlight for its refining and processing capabilities. If you had bought a significant quantity of this stock a year ago you would be rolling in the dough now due to increasingly bullish market conditions making it skyrocket.
Read more: NevGold raises $5.5M for promising gold-antimony prospects in Nevada
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