Perpetua Resources stock price target raised by BMO Capital to C$44

Investing.com - BMO Capital has raised its price target on Perpetua Resources Corp. (NASDAQ:PPTA) to C$44.00 from C$41.00 while maintaining an Outperform rating. The stock has shown remarkable momentum, delivering a 137% return year-to-date and currently trading at $24.18.

The price target increase follows Perpetua’s announcement of a US$255 million private placement, which includes approximately 10.9 million shares priced at US$23.30 each. Key investors in this placement include Agnico Eagle and JPMorgan Chase. According to InvestingPro data, Perpetua maintains strong financial health with a current ratio of 71.11 and holds more cash than debt on its balance sheet.

The participating companies will receive warrants priced at premium levels of 35%, 50%, and 65% over one, two, and three-year periods, respectively. This equity financing replaces a potential gold royalty or stream arrangement that BMO had previously modeled as a 3.9% net smelter return for US$250 million.

As part of the agreement, a joint technical and exploration advisory committee will be established with Agnico Eagle. This development represents a significant capital infusion for Perpetua Resources.

BMO Capital cited these developments in its decision to raise the price target while keeping its Outperform rating on Perpetua Resources stock unchanged.

In other recent news, Perpetua Resources Corp. has secured $255 million in strategic equity investments from Agnico Eagle Mines Limited and JPMorganChase. Agnico Eagle, a major player in the gold production industry, will invest $180 million for a 6.5% stake, while JPMorganChase will contribute $75 million for a 2.7% stake. This financial boost comes shortly after Perpetua broke ground on its Stibnite Gold Project in Idaho, having met construction requirements set by the U.S. Forest Service. The project is notable for containing what is described as the only reserve of antimony in the United States, a mineral critical for defense and industrial use.

In leadership news, Perpetua has announced the appointment of Mark Murchison as its new Chief Financial Officer, effective October 1, 2025, following the resignation of Jessica Largent. Murchison brings extensive experience from his previous roles at Alacer Gold and Rio Tinto. Additionally, Perpetua plans to issue a Request for Proposal to evaluate potential partners for processing antimony from the Stibnite Gold Project. This initiative will explore third-party processing facilities for commercial antimony, separate from its ongoing collaboration with the U.S. Army.

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