Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) completed a $425 million ($425M) equity financing, upsized from $400M, reported Cantor Fitzgerald Analyst Mike Kozak in a June 17 research note.
"In our view, this completes the equity financing component of the Stibnite project's $2.2 billion ($2.2B) initial capital requirement," Kozak wrote.
69% Return Implied
Cantor reiterated its $22 per share target price on the explorer, trading at the time of Kozak's report at about $13 per share, the analyst noted. From that price, the return to target is 69%.
Perpetua Resources remains a Buy.
As of Kozak's report, the company has 103.7 million (103.7M) shares outstanding, a market cap of $1.3B and a 52-week range of $5.01–17.96 per share.
Funding Options
In the recent upsized equity raise, 32.3M shares were issued at $13.20 apiece, reported Kozak. Cantor participated as a joint bookrunning manager in the $325M brokered component. Perpetua's largest shareholder Paulson & Co. purchased $100M worth of shares through a nonbrokered private placement on identical terms.
Also, Perpetua has applied for up to $2B in debt financing for Stibnite from the Export-Import Bank of the United States (EXIM) and is waiting for it to complete its due diligence and respond. Cantor expects that Perpetua will receive a "preliminary project letter" from EXIM in early to mid-July and that debt package finalization will happen subsequently in early 2026.
The U.S. gold-antimony company is exploring a third way to raise funds, specifically in the amount of $200–250M, noted Kozak. That is by selling a gold stream or through a net smelter return royalty up to 3.9% with certain buyback provisions, and currently is in advanced discussions about such a deal. Capital raised by this means would fund a cost over-run account and allow Perpetua to begin construction at Stibnite this year.
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