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BOISE, Idaho - Perpetua Resources Corp. (NASDAQ:PPTA) (TSX:PPTA) announced Monday that underwriters have fully exercised their option to purchase an additional 3,693,300 common shares, generating approximately $49 million in gross proceeds for the company. The announcement comes as the company’s stock has shown strong momentum, gaining over 12% in the past week and pushing its market capitalization to $1.53 billion, according to InvestingPro data.
The option exercise follows Perpetua’s previously announced $325 million public offering of 24,622,000 common shares priced at $13.20 each and a concurrent $100 million private placement to Paulson & Co. Inc. The combined transactions bring the company’s total gross proceeds to approximately $474 million.
National Bank of Canada Financial Markets and BMO Capital Markets exercised the option in full, according to the company statement.
Perpetua intends to use the proceeds as part of its comprehensive financing package for the development of its Stibnite Gold Project in central Idaho. The project aims to restore an abandoned mine site while producing gold, silver, and antimony.
The company describes the Stibnite Gold Project as one of the highest-grade, open pit gold deposits in the United States. Perpetua notes that antimony from the site would represent the only mined source of the mineral in the United States, with potential applications for U.S. defense needs.
The announcement was made through a press release statement from the company.
In other recent news, Perpetua Resources has completed a significant equity raise of $325 million through the issuance of 24.6 million common shares at $13.20 per share. This capital raise included a greenshoe option, potentially bringing the total proceeds to $374 million if fully exercised. Additionally, the company secured a $100 million private placement with Paulson & Co. Inc. at the same price per share. These funds are earmarked for the development of the Stibnite Gold Project in Idaho and form part of a larger financing strategy, including an application for up to $2 billion in debt financing from the Export-Import Bank of the United States.
H.C. Wainwright has maintained its Buy rating on Perpetua Resources following the capital raise, with a price target of $27.50. In another development, the U.S. Army Corps of Engineers has granted the final federal permit required under the Clean Water Act for the Stibnite Gold Project, marking a critical milestone in the project’s advancement. The project is expected to produce 450,000 ounces of gold annually during its initial years and aims to restore an abandoned mine site while providing economic benefits. Furthermore, Perpetua Resources received an additional $6.9 million in defense funding from the U.S. Army, supplementing previous awards to develop a domestic antimony supply for military applications.
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