BOISE, Idaho - Perpetua Resources Corp. (NASDAQ:PPTA) (TSX:PPTA), a mining company focused on gold, antimony, and silver deposits, has priced its public offering of common shares at $10.17 each. The sale of 3,439,465 shares is expected to generate gross proceeds of approximately $35 million, which may increase to $40 million if an underwriters' option is exercised in full.
The net proceeds from the offering are intended for use in making down payments on long lead time materials, detailed engineering for the Stibnite Gold Project, and general corporate purposes. The Stibnite Gold Project aims to redevelop gold-antimony-silver deposits in central Idaho with a modern mining approach.
BMO Capital Markets and National Bank of Canada (OTC:NTIOF) Financial Markets are acting as joint lead book-running managers for the offering, with additional financial institutions serving as co-managers.
Perpetua Resources has also granted the underwriters an option to purchase up to an additional 515,919 shares, which can be exercised within 30 days from the underwriting agreement date. The offering is scheduled to close around November 20, 2024, subject to customary closing conditions.
The offering is made in the U.S. under an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC). The securities will be offered only by means of a prospectus and related prospectus supplement.
This announcement is not an offer to sell or a solicitation of an offer to buy Perpetua Resource's common stock in any jurisdiction where such an offer or sale would be unlawful.
Perpetua Resources is pursuing the Stibnite Gold Project to restore an abandoned mine site and produce gold along with antimony, which is vital for U.S. defense needs. The project is also expected to contribute to the low-carbon energy transition by supplying antimony to a U.S.-based company for use in liquid metal batteries.
This news article is based on a press release statement.
In other recent news, Perpetua Resources Corp. has announced a public offering of 3,439,465 common shares, with BMO Capital Markets and National Bank of Canada Financial Markets acting as the joint lead book-running managers. This move is part of the company's plan to raise funds for its Stibnite Gold Project, one of the highest-grade open-pit gold deposits in the United States. The company has secured a $59.2 million Technology Investment Agreement for this project, which will also supply antimony to Ambri, a company specializing in liquid metal batteries.
Perpetua Resources has seen significant financial developments, with a decrease in net loss to $2.9 million in Q1 2024, largely due to an increase in grant income to $5.2 million. The company has also received substantial support from the Defense Production Act and the Department of Defense Ordnance Technology Consortium. In addition, Perpetua Resources has enlisted RBC Capital Markets and Endeavour Financial to explore strategic and financing opportunities.
Several analyst firms have adjusted their outlook on Perpetua Resources. H.C. Wainwright has raised the stock's price target to $22.00, while Roth/MKM has increased the price target from $10.00 to $12.00. Cantor Fitzgerald has upgraded the stock's rating to Buy from the previous Speculative Buy, setting a new price target at Cdn$18.25. These upgrades reflect the company's ongoing progress on the Stibnite Gold Project and the strategic importance of domestic antimony production.
InvestingPro Insights
Perpetua Resources Corp. (NASDAQ:PPTA) has seen remarkable market performance recently, with InvestingPro data showing a significant 234.38% year-to-date price total return as of the latest available data. This aligns with the company's recent public offering, suggesting strong investor interest in its Stibnite Gold Project and overall business prospects.
The company's stock is currently trading near its 52-week high, with a price that is 98.6% of its peak over the past year. This robust performance is further underscored by a 27.33% price total return over the last three months, indicating sustained momentum in investor sentiment.
However, it's important to note that Perpetua Resources is not currently profitable, as highlighted by one of the InvestingPro Tips. The company's adjusted operating income for the last twelve months stands at -$47.08 million USD. This financial position contextualizes the recent public offering, as the company seeks to raise capital for its ambitious Stibnite Gold Project.
Despite the current lack of profitability, InvestingPro Tips suggest that Perpetua Resources operates with a moderate level of debt and its liquid assets exceed short-term obligations. These factors may provide some financial flexibility as the company moves forward with its project development plans.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Perpetua Resources, providing a deeper understanding of the company's financial health and market position.
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