Perpetua Resources Corp. (NASDAQ:PPTA) (TSX:PPTA) has announced a significant milestone with the signing of a royalty agreement with a subsidiary of Franco-Nevada Corporation. Under the terms of the agreement, Perpetua will sell its future payable silver production from the Stibnite Gold Project, receiving an upfront payment of $8.5 million. This strategic transaction is aimed at bolstering Perpetua’s liquidity for its immediate priorities, complementing the funding received from the Department of Defense for advancing permitting and construction readiness.
The silver by-product from the Stibnite Gold Project represents a minor fraction, less than 0.3%, of the projected life-of-mine revenue, as indicated in the 2020 Feasibility Study. Jon Cherry, President and CEO of Perpetua, underscored the significance of establishing a domestic source of antimony, another critical mineral to be produced alongside gold at the Stibnite Gold Project. Cherry emphasized the project’s role in enhancing America’s national and economic security.
The proceeds from the royalty agreement will be allocated towards general corporate purposes, including the advancement of the Stibnite Gold Project through the National Environmental Policy Act review process, led by the United States Forest Service. Jessica Largent, CFO of Perpetua, expressed gratitude for Franco-Nevada’s support and confidence in the project. Largent highlighted that the transaction, coupled with anticipated Department of Defense funding, amounts to over $80 million in non-dilutive capital for Perpetua.
The Stibnite Gold Project is strategically designed to re-establish a U.S. source of antimony, serving as a by-product of one of the highest-grade open pit gold resources in the country. The additional funding secured through the royalty agreement will further propel the project’s progress towards construction readiness.
Perpetua Resources is dedicated to the exploration, site restoration, and redevelopment of gold-antimony-silver deposits in central Idaho. With a focus on responsible mining practices, the Stibnite Gold Project aims to restore an abandoned mine site while producing gold and antimony, vital components for various defense applications.
