Bullish indicating open at $55-$60, IPO prices at $37
BOISE, Idaho - Perpetua Resources Corp. (Nasdaq: PPTA) (TSX: PPTA), currently valued at $1.18 billion and showing a remarkable 143% return over the past year according to InvestingPro, has entered into an agreement for a US$300 million bought deal offering of common shares at US$13.20 per share, according to a press release statement issued today.
The company also announced a concurrent US$100 million private placement with Paulson & Co. Inc. at the same price. National Bank of Canada Financial Markets and BMO Capital Markets are acting as joint lead bookrunning managers for the public offering.
Perpetua plans to use the proceeds as part of a comprehensive financing package for its Stibnite Gold Project in Idaho. The funds will be directed toward equity requirements for a potential US$2 billion debt financing application submitted to the Export-Import Bank of the United States (EXIM) in May 2025.
The company is also in advanced discussions with potential partners for a US$155 million guarantee arrangement to satisfy financial assurance requirements, along with proceeds between US$200-250 million in exchange for either a gold net smelter return royalty or a gold stream.
If all financing components are successfully completed, Perpetua believes it will have sufficient capital to fund the project’s US$2.2 billion construction costs, plus additional funds for contingencies and working capital.
The offering is expected to close on or about June 16, 2025, subject to customary conditions. The company has granted underwriters an option to purchase up to an additional 3,409,200 shares, which would increase the gross proceeds to approximately US$345 million if exercised in full.
The Stibnite Gold Project is designed to restore an abandoned mine site while producing gold and antimony, the latter being a critical mineral for U.S. defense needs. InvestingPro analysis shows the company maintains a strong financial health score of 2.6 (GOOD) with a comfortable current ratio of 5.95, though investors should note the company is not yet profitable. For deeper insights into Perpetua’s financial metrics and growth potential, InvestingPro offers 11 additional investment tips.
In other recent news, Perpetua Resources Corp. has received an additional $6.9 million in defense funding from the U.S. Army, which supplements the $15.5 million awarded in August 2023. This funding is intended to support the development of a domestic supply of antimony trisulfide for military applications. The Stibnite Gold Project, central to Perpetua’s operations, is expected to meet a significant portion of U.S. antimony demand, especially after China ceased exports to the U.S. in 2024. Additionally, the U.S. Army Corps of Engineers has granted a crucial permit under the Clean Water Act Section 404, marking a significant advancement for the Stibnite Gold Project towards construction. This development follows an extensive eight-year federal permitting process and aligns with the project’s timeline set by the Federal Permitting Improvement Steering Council. Meanwhile, H.C. Wainwright has maintained a Buy rating on Perpetua Resources but lowered its price target to $27.50, following the company’s report of a net loss of $8.2 million in the recent quarter. Despite the target adjustment, the firm’s outlook on Perpetua remains positive, emphasizing the importance of the Stibnite project in the U.S. critical mineral supply chain. The company has also increased its exploration investment significantly, spending $13.1 million in the recent quarter to further de-risk its flagship project.
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