Perpetua Resources (TSX:PPTA,NASDAQ:PPTA) announced a US$255 million strategic equity investment from Agnico Eagle Mines (TSX:AEM,NYSE:AEM) and JPMorganChase to accelerate development of its Stibnite gold project in central Idaho.
Under the private placement, Agnico Eagle will invest US$180 million in Perpetua common shares and receive warrants to purchase up to 2,861,229 additional shares at 35, 50, and 65 percent premiums over the next one, two, and three years respectively.
The Canadian gold producer will also collaborate with Perpetua to form a joint technical and exploration advisory committee, leveraging its decades of mining experience to support the project’s development.
“The Stibnite gold project is an excellent opportunity in a premier mining jurisdiction,” said Ammar Al-Joundi, President and CEO of Agnico Eagle. “Our investment in Perpetua aligns with Agnico Eagle’s commitment to disciplined and strategic investments through emerging and high-quality opportunities and provides measured exposure to one of the highest-grade open-pit gold deposits in the United States, with significant exploration upside.”
Meanwhile, JPMorganChase will contribute US$75 million through its US$1.5 trillion Security and Resiliency Initiative, a 10-year effort aimed at financing industries critical to US economic security and resiliency. This marks the initiative’s inaugural investment.
The bank will also acquire 3,218,884 common shares and receive warrants to purchase additional shares under the same pricing schedule as Agnico Eagle, bringing its potential stake to 2.7 percent of the company.
“Investments from two leading, world-class institutions strengthens our capital position, reduces financing risk, and accelerates the development of one of the nation’s most strategic resource projects,” said Jon Cherry, President and CEO of Perpetua Resources
Perpetua plans to use the proceeds, along with existing cash and anticipated project financing of up to US$2 billion from the Export-Import Bank of the United States, to fund the projects’s further development and exploration.
The company broke ground on Stibnite just days before announcing the investment. The Stibnite project is positioned as one of the highest-grade gold operations in the US, while also producing antimony, a critical mineral with industrial and defense applications.
The project aims to restore portions of a previously abandoned mine while also addressing historical environmental impacts.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.