Perpetua Resources (NASDAQ:PPTA) +9% pre-market Monday after saying it entered into agreements to raise $255 million in equity investments from Agnico Eagle Mines (NYSE:AEM) and JPMorganChase (JPM) in a private placement.
The commitment comes days the company broke ground on the Stibnite project in Idaho, which is expected to produce the only U.S. reserve of the critical mineral antimony one of the highest-grade gold producers in the U.S.
Agnico Eagle (NYSE:AEM) agreed to purchase more than 7.7 million common shares for a total purchase price of $180 million and receive warrants to purchase up to ~2.86 million common shares, while JPMorganChase (JPM) agreed to invest nearly 3.22 million common shares for a total purchase price of $75 million and receive warrants to purchase up to ~1.19 million common shares; the private placement was priced at $23.30/share, Perpetua’s (NASDAQ:PPTA) closing price on October 24.
Agnico Eagle’s (AEM) purchase will result in a 6.5% equity stake in Perpetua (PPTA), and JPM’s (JPM) purchase will result in a 2.7% equity stake in the company.
Perpetua (PPTA) is searching for a partner to refine its antimony, and is in talks with Glencore, Trafigura and others about a refining partnership; a decision expected by the end of this year.