Perpetua Resources stock holds Buy rating at H.C. Wainwright after raise

Published 17/06/2025, 12:36
Perpetua Resources stock holds Buy rating at H.C. Wainwright after raise

Perpetua Resources (NASDAQ:PPTA) completed a $325 million equity raise through the issuance of 24.6 million common shares at $13.20 per share, H.C. Wainwright reported Monday. The offering, which closed on Sunday, June 16, 2025, included a greenshoe option allowing underwriters to purchase up to 3.7 million additional shares. According to InvestingPro data, the stock has experienced a 21% decline over the past week, though it maintains a strong 92% return over the last year.

The company could receive aggregate gross proceeds of approximately $374 million if the greenshoe option is exercised in full, according to H.C. Wainwright. Perpetua also entered into an agreement for a private placement of $100 million in shares at the same price, which closed on Sunday.

Perpetua Resources is expected to use the funds for the development of its Stibnite project in conjunction with its application for up to $2 billion in financing from the Export-Import Bank of the United States (EXIM). Management anticipates this debt financing to close sometime in 2026, pending successful due diligence on the application by EXIM.

H.C. Wainwright reiterated its Buy rating on Perpetua Resources with a price target of $27.50 following the capital raise announcement. The firm’s rating remained unchanged after the June 12 announcement and subsequent closing of the offerings.

The equity raise represents a significant capital infusion for Perpetua as it advances the Stibnite project, with the combined public offering and private placement totaling $425 million before considering the potential additional proceeds from the greenshoe option.

In other recent news, Perpetua Resources Corp. announced a significant increase in its public offering to $325 million, with the issuance of 24,622,000 common shares at $13.20 per share. This move comes as part of a comprehensive financing package for the Stibnite Gold Project in Idaho, with the company also securing a $100 million private placement from Paulson & Co. Inc. Additionally, the U.S. Army Corps of Engineers granted a crucial permit under the Clean Water Act for the Stibnite Gold Project, marking a pivotal step towards construction. The project aims to produce gold and antimony, a critical mineral for defense applications, while restoring the historical mining district. Further supporting this initiative, Perpetua has received an additional $6.9 million in defense funding from the U.S. Army through the Defense Ordnance Technology Consortium. In terms of analyst activity, H.C. Wainwright maintained a Buy rating on Perpetua Resources but lowered its stock target to $27.50. This adjustment follows the company’s latest financial report, which showed a net loss of $8.2 million in the recent quarter, alongside increased exploration spending. Despite the target cut, the analyst maintains a positive outlook on Perpetua’s role in bolstering the U.S. critical mineral supply.

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