Gold prices slip lower; consolidating after recent gains
Investing.com -- Perpetua Resources Corp. (NASDAQ:PPTA) stock plunged 19% after the company announced it would increase the size of its previously announced bought deal financing due to excess demand.
The mining company will now issue 24,622,000 common shares at a price of $13.20 per share, raising approximately $325 million in gross proceeds. The offering is being led by National Bank of Canada (OTC:NTIOF) Financial Markets and BMO Capital Markets. Additionally, Paulson & Co. Inc. has agreed to purchase $100 million of common shares in a private placement at the same offering price.
Perpetua has also granted underwriters an option to purchase up to an additional 3,693,300 common shares, representing 15% of the offering. If this option is exercised fully, the aggregate gross proceeds could reach approximately $374 million.
The company intends to use the proceeds as part of a comprehensive financing package for developing its Stibnite Gold Project, in conjunction with an application for up to $2 billion in project financing submitted to the Export-Import Bank of the United States in May 2025. The funds will be designated toward equity requirements for the EXIM debt financing, with additional funds supporting exploration activities, working capital, and general corporate purposes.
EXIM’s due diligence on Perpetua’s application is ongoing and conditional upon successfully completing the underwriting process. If successful, the company anticipates closing the debt financing in 2026. The current equity offering is expected to close around June 16, 2025, subject to customary conditions.
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