Perpetua Resources secures financing for Stibnite Gold Project with Franco-Nevada

Perpetua Resources Corp. (Nasdaq: PPTA) (TSX: PPTA) has announced a significant step forward in financing its Stibnite Gold Project through a Royalty Agreement with Franco-Nevada Corporation. This agreement, valued at an upfront payment of $8.5 million, is centered on the future payable silver production from the project. Jon Cherry, President and CEO of Perpetua Resources, emphasized the strategic nature of this transaction, allowing the company to monetize a non-strategic by-product and enhance liquidity. This move is in line with Perpetua’s objective to cover near-term priorities, significantly supported by the Department of Defense funding for permitting and construction readiness.

The Stibnite Gold Project, positioned as a critical endeavor for domestic sourcing of the antimony mineral, plays a crucial role in bolstering America’s national and economic security. The transaction with Franco-Nevada highlights the silver by-product revenue, which constitutes less than 0.3% of the project’s projected life-of-mine revenue, according to the 2020 Feasibility Study.

Jessica Largent, CFO of Perpetua Resources, expressed gratitude towards Franco-Nevada for their continued support and confidence in the project. This agreement, coupled with Department of Defense funding, provides Perpetua with over $80 million in non-dilutive capital. As the project progresses towards construction, Perpetua is keen on exploring various financing options to maximize shareholder value.

The Stibnite Gold Project aims to re-establish a U.S. source for the critical mineral antimony, alongside producing gold and silver. With an emphasis on sustainable mining practices, the project promises to restore an abandoned mine site using modern, responsible mining methods. It is also expected to significantly contribute to the low-carbon energy transition through a partnership with Ambri, focusing on the development of a low-cost liquid metal battery technology.

The strategic royalty agreement between Perpetua Resources and Franco-Nevada represents a significant milestone for the Stibnite Gold Project and the broader mining industry. By securing non-dilutive capital, Perpetua demonstrates a strong commitment to advancing the project while minimizing equity dilution. This approach not only underscores the economic potential of the Stibnite Gold Project but also its environmental and social governance (ESG) aspirations. As the demand for critical minerals like antimony grows, especially for defense and renewable energy applications, projects like Stibnite are essential for meeting these needs sustainably. The partnership with Franco-Nevada could serve as a model for future financing initiatives in the mining sector, especially those aiming to balance economic development with environmental stewardship.