Perpetua gets US$34.6M DoD grant
RoD expected this year
Perpetua Resources has obtained an additional award of up to US$34.6 million from the US Department of Defense by extending the current agreement under the Defense Production Act.
The additional funding under the existing Technology Investment Agreement (TIA) will support continued construction readiness and permitting activities at its Stibnite gold-antimony project in Idaho, US.
The new grant brings Perpetua's Defense Production Act Title III funding to $59.4 million. Combined with the other awards it has received over the last ~18 months, Perpetua has obtained about $75 million in non-dilutive capital to advance Stibnite.
The additional award is conditioned on modifying the existing TIA to expand the work scope for advancing permits and construction readiness. The modification is anticipated to be completed in the March quarter of 2024.
Stibnite hosts some 149Mlb of antimony and would become the sole US producer of the critical mineral. The project would produce around 20Mlbpa of antimony during its first six years, in addition to producing 297,000ozpa of gold.
Under the modified TIA, Perpetua may request reimbursement for certain costs incurred through June 2025 related to baseline environmental data monitoring, environmental and technical studies, and other activities related to advancing towards construction readiness and permitting.
Perpetua anticipates receiving a Federal Record of Decision to complete the permitting process for its $1.3 billion Stibnite this year.
Receiving its permits should see Perpetua shares rerate, as the US$2000/oz gold price gives the project an estimated net present value of some $2.2 billion.
Shares in Perpetua Resources are trading at $2.78, valuing the company at $176 million.
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