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Perpetua Resources Corp
Symbol PPTA
Shares Issued 63,165,367
Close 2023-08-18 C$ 3.79
Market Cap C$ 239,396,741
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Perpetua unit wins $15.5M in DoD funding for Sb supply

2023-08-21 09:13 ET - News Release

Ms. Laural Sayer reports


Perpetua Resources Corp.'s wholly owned subsidiary, Perpetua Resources Idaho Inc., has been awarded an ordnance technology initiative agreement (OTIA) of up to $15.5-million under the prototype other transaction (OT) authority of the Department of Defense (DoD) through the DoD Ordnance Technology Consortium (DOTC). Managed by the U.S. Army Joint Center of Excellence for Guns and Ammunition at the Picatinny Arsenal in New Jersey, the objective of the OTIA is to demonstrate a fully domestic antimony trisulphide supply chain using ore from the Stibnite gold project site for use in munitions. To meet this objective, the company plans to obtain additional core samples from the project site, conduct a pilot plant study to produce mil-spec antimony trisulphide from the samples, design a full-scale process circuit and deliver a modular pilot plant for the DoD to use in further investigations.

Under the OTIA, Perpetua will be reimbursed for these activities on a cost plus fixed fee basis over the 24-month period of performance. The current estimated amount is $15.5-million, which is subject to adjustment by the DOTC based on scope, costs, budget or other factors as the program advances. Perpetua will be entitled to reimbursement for all costs incurred under the agreement.

"We are excited to expand our partnership with the Department of Defense and are proud to help demonstrate a fully domestic supply chain solution for the ammunition our troops need to keep our nation and our allies safe," said Laurel Sayer, President and chief executive officer of Perpetua Resources. "Our vision remains unchanged, which is to redevelop a world-class gold deposit, provide the country with the critical mineral antimony and restore an abandoned brownfield site. Perpetua is ready to be part of the solution and support our country's defence supply chains from ground to round."

Antimony trisulphide is essential to national defence as a key component for munitions. Currently, China, Russia and Tajikistan control approximately 90 per cent of the world's antimony supply and the United States has no domestically mined source of the critical mineral. Perpetua plans to re-establish a domestic supply of the critical mineral antimony as a byproduct of one of the highest-grade open-pit gold resources in the United States.

The DOTC was established to foster innovation in defence technology through collaboration between industry, academia and government to advance and expand the country's military technological superiority. The DOTC funding allows the company to demonstrate the suitability of the project's antimony trisulphide concentrate for use in munitions while the company continues through the permitting process, led by the United States Forest Service (USFS). The agreement does not interrupt the continuing National Environmental Policy Act (NEPA) review process. The OTIA will build on research conducted under a previously announced Small Business Innovation Research grant.

About Perpetua Resources Corp. and the Stibnite gold project

Perpetua Resources, through its wholly owned subsidiaries, is focused on the exploration, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by the Stibnite gold project. The project is one of the highest-grade, open-pit gold deposits in the United States and is designed to apply a modern, responsible mining approach to restore an abandoned mine site and produce both gold and the only mined source of antimony in the United States. Further advancing Perpetua Resources' ESG (environmental, social, governance) and sustainable mining goals, the project will be powered by the lowest carbon emissions grid in the nation and a portion of the antimony produced from the project will be supplied to Ambri, a U.S.-based company commercializing a low-cost liquid metal battery essential for the low-carbon energy transition. Perpetua Resources has been awarded a technology investment agreement of $24.8-million in Defense Production Act Title III funding to advance construction readiness and permitting of the project. Antimony trisulphide from Stibnite is the only known domestic source of antimony that can meet U.S. defence needs for many small arms, munitions and missile types. In addition to the company's commitments to transparency, accountability, environmental stewardship, safety and community engagement, Perpetua Resources adopted formal ESG commitments.

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