Perpetua Resources (TSX: PPTA) has secured two new major investors following the launch of construction of their flagship Stibnite Gold project in Idaho. The company has managed to secure major investments from both Agnico Eagle Mines (TSX: AEM), as well as JPMorganChase.
The investment arrangement will see Agnico Eagle invest a total of $180 million in the company via the purchase of 7.73 million common shares. JPMorganChase meanwhile will invest up to $75 million in the company via the purchase of 3.2 million shares.
Perpetua has indicated that the investments were sought as an alternative to selling a gold royalty or stream on the Stibnite project to fund construction.
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The investment from Agnico will amounted to a 6.5% equity stake in the company, with the producer set to acquire shares at a price of US$23.30 per each. Included in the purchase is 2.86 million warrants with a three year expiry, with exercise prices of $31.46, $34.95, and $38.45 per share for the one, two, and three year periods following the closing of the financing.
JPMorganChase meanwhile is to take a 2.7% equity stake in Perpetua as part of their $1.5 trillion Security and Resiliency Initiative. The investment will also contain 3.2 million warrants under the same three year pricing structure as Agnico’s warrants.
“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,” commented Jon Cherry, CEO of Perpetua Resources.
Funds raised from the financing are to be used for the development of the Stibnite project, exploration activities, working capital, and general corporate purposes.
Perpetua Resources last traded at $32.60 on the TSX.
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