Perpetua secures $2.9bn loan from US Export-Import Bank that fully funds Stibnite project
Nasdaq-listed Perpetua Resources Corporation has secured a $2.9-billion senior secured long-term loan with the US’s Export-Import Bank (Exim), which will support development of the Stibnite gold project, in Idaho.
Under the “Make More in America” initiative, the US federal government is working with the private sector on the shared national priority that is secure mineral and manufacturing supply chains.
The Exim funding package, combined with Perpetua’s cash on hand, is expected to fully fund the direct construction of Stibnite – which has a total project cost of $2.5-billion.
The Stibnite project is designed to responsibly redevelop and restore the abandoned Stibnite Mining District in Idaho to produce gold and the nation’s only reported reserve of antimony.
Antimony is highly valued in manufacturing for its unique ability to harden lead, resist corrosion, and act as a flame retardant.
The Exim loan proceeds will become available upon completion of definitive documentation and satisfaction of customary conditions precedent, which are expected to occur in the second half of the year.
The loan is structured as a 13-year senior secured credit facility, consisting of an upfront facility of $2.4-billion, with the remainder to cover capitalised interest during construction and Exim’s exposure fee.
“Today marks not only a key milestone for Perpetua but a significant step in mineral security for the country,” says Perpetua CEO and president Jon Cherry.
“When the federal government and private industry work together on a shared national priority, big things are made possible. The $2.9-billion loan positions us to bring the Stibnite project to life and signals a new day in American mineral independence and responsible mining.
“We are immensely proud of our role in strengthening America's national security, creating hundreds of jobs in rural Idaho, and reducing our dependence on foreign adversaries for a mineral we cannot do without,” Cherry states.
Exim’s loan approval marks a landmark transaction under the “Make More in America” initiative and advances American production and manufacturing to be more competitive on the world stage. As the only identified domestic reserve of antimony, Exim’s investment in the Stibnite project advances American critical mineral independence for antimony.
US Senator for Idaho Mike Crapo comments the Exim investment in Perpetua strengthens America’s economic and national security by advancing a reliable domestic supply of critical minerals essential to manufacturing and defence.
“Exim is helping secure the infrastructure needed to reduce our dependence on foreign adversaries, support American workers and reinforce our long-term industrial competitiveness,” he notes.
