© Reuters.
BOISE, Idaho – Perpetua Resources Corp. (NASDAQ:PPTA) (TSX:PPTA) has entered into a royalty agreement with a subsidiary of Franco-Nevada Corporation, selling its future payable silver production from the Stibnite Gold Project for an $8.5 million upfront payment. The transaction aims to enhance Perpetua’s liquidity for its near-term priorities, complementing the funding from the Department of Defense for advancing permitting and construction readiness.
The silver by-product from the Stibnite Gold Project represents less than 0.3% of the projected life-of-mine revenue, according to the 2020 Feasibility Study. Perpetua’s President and CEO, Jon Cherry, emphasized the importance of establishing a domestic source of the critical mineral antimony, which the Stibnite Gold Project will also produce, for America’s national and economic security.
Perpetua plans to use the proceeds for general corporate purposes, including the advancement of the Stibnite Gold Project through the National Environmental Policy Act review process, led by the United States Forest Service. CFO Jessica Largent expressed gratitude for Franco-Nevada’s support and confidence, noting that the transaction, along with anticipated Department of Defense funding, accounts for over $80 million in non-dilutive capital.
The Stibnite Gold Project is designed to re-establish a U.S. source of antimony as a by-product of one of the highest-grade open pit gold resources in the country. The additional funding will support the project’s advancement toward construction readiness.
Perpetua Resources is focused on the exploration, site restoration, and redevelopment of gold-antimony-silver deposits in central Idaho. The Stibnite Gold Project aims to apply responsible mining practices to restore an abandoned mine site and produce gold and antimony, which is essential for various defense applications.
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