Perpetua Resources up for more Defense funding for Stibnite project in Idaho

Perpetua Resources (TSX: PPTA; NASDAQ: PPTA) announced Monday that it’s up for another US$34.6 million in additional funding from the U.S. Department of Defense, bringing total support to up to US$59.4 million.

Perpetua’s Idaho-based subsidiary was conditionally awarded up to US$34.6 million under its existing technology investment agreement with DoD. The original agreement announced in December provides up to US$24.8 million in support through Title III of the Defense Production Act (DPA).

Full funding of the additional award is conditioned on modifying the existing agreement to expand the scope work for advancing permits and construction readiness. The company expects the agreement will be amended in the first quarter.

Antimony trisulphide is essential to national defence as a key component for munitions, yet no domestic mined supply currently exists. China, Russia, and Tajikistan control 90% of the global antimony supply chain.

Perpetua’s proposed Stibnite gold project is designed to re-establish a U.S. source of the critical mineral antimony as a byproduct of one of the highest-grade open pit gold resources in the United States.

According to Perpetua’s January 2021 feasibility study, the project has total proven and probable mineral reserves of 104.6 million tonnes grading 1.43 grams per tonne gold. Reserves include 14.2 million tonnes of high-antimony ore grading 0.42% antimony. Average annual metal production during the first four years of operation is forecast at 463,000 oz. of gold and 18.4 million lb. of antimony.

The additional funding will allow the company to continue advancing Stibnite and support the environmental and technical studies related to the project’s progress through the National Environmental Policy Act (NEPA) review process, led by the United States Forest Service.

Under the modified TIA, Perpetua may request reimbursement for certain costs incurred through June 30, 2025 related to environmental baseline data monitoring, environmental and technical studies and other activities related to advancing Perpetua’s construction readiness and permitting process for the project. The DPA funding does not interrupt the ongoing NEPA review.

“This latest award from the Department of Defense brings us a step closer to realizing our vision for the Stibnite gold project,” Perpetua CEO Laurel Sayer said in a statement.

“Establishing a domestic source of the critical mineral antimony is more important than ever, and we stand ready to responsibly produce critical resources here at home and help strengthen America’s national and economic security.”

Perpetua has a $245.5-million market cap and trades in Toronto at $3.88 per share in a 12-month range of $3.56 and $7.32.