Perpetua Resources secures additional $6.9 million defense funding

BOISE, Idaho - Perpetua Resources Corp. (NASDAQ:PPTA) (TSX:PPTA), with a market capitalization of $1.02 billion, has received up to an additional $6.9 million from the U.S. Army through the Defense Ordnance Technology Consortium (DOTC). This funding supplements the $15.5 million awarded in August 2023, aimed at developing a domestic antimony trisulfide supply for military applications. The new funds will expand testing and the scope of a flexible, modular pilot plant, supporting the Army’s "ground-to-round" critical minerals strategy. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 5.95, indicating robust financial flexibility to execute these projects.

The Stibnite Gold Project, central to Perpetua’s operations, is anticipated to meet 35% of U.S. antimony demand in its first six years. This project gained importance after China, controlling most of the global market, ceased antimony exports to the U.S. in 2024. The Project’s significance extends beyond national security, promising job creation, environmental restoration, and water quality improvement at an abandoned mine site. The market has responded positively to these developments, with InvestingPro showing a remarkable 127% return over the past year, with the stock trading near its 52-week high of $15.44.

Jon Cherry, Perpetua’s President and CEO, expressed the company’s pride in contributing to America’s mineral independence and resilience. Colonel Steven Power from the Picatinny Arsenal highlighted antimony trisulfide’s critical role in over 300 munition types and the importance of a domestic supply chain.

Perpetua’s partnership with the Department of Defense reflects a broader effort to secure domestic sources of critical minerals. The overall funding from the Department of Defense now exceeds $80 million, with reimbursement for project costs plus a fixed fee through 2026. The Stibnite Gold Project also represents the sole mined source of antimony in the U.S., essential for various munitions and missile systems.

The DOTC, supported by the Office of the Secretary of Defense and utilized by all Services and Defense Agencies, works with the National Armaments Consortium to advance military technological superiority. Perpetua Resources also received a $59.2 million Defense Production Act Title III funding for the Stibnite Gold Project.

This announcement is based on a press release statement and contains forward-looking information regarding future material sampling and pilot plant adjustments. Perpetua Resources has made assumptions about funding and project success, which involve risks and uncertainties that could cause actual results to differ materially from those anticipated. While analysts maintain a positive outlook with price targets ranging from $16 to $27.50, InvestingPro subscribers can access 13 additional key insights about Perpetua’s financial health, valuation metrics, and growth potential to make more informed investment decisions.

In other recent news, Perpetua Resources Corp. has announced a significant development for its Stibnite Gold Project in Idaho, as the U.S. Army Corps of Engineers issued the final federal permit required under the Clean Water Act Section 404. This milestone comes after an extensive eight-year federal permitting process, moving the project closer to construction. The project is poised to supply the only domestically produced source of antimony, a mineral critical for technology and defense. Additionally, Perpetua Resources reported a net loss of $8.2 million, or $0.12 per share, for the recent quarter, compared to a $2.9 million loss in the same quarter last year. The company also received $6.4 million in grant income from the U.S. Department of Defense, with a notable increase in funding from the Defense Production Act. Meanwhile, H.C. Wainwright maintained a Buy rating on Perpetua Resources but lowered its price target slightly to $27.50. The firm remains confident in the company’s role in the U.S. critical mineral supply chain, particularly through the Stibnite project. Perpetua Resources is expected to continue increasing its exploration expenses to further de-risk the project.

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