Perpetua Resources Announces Offering of Common Shares

Rhea-AI Summary

Perpetua Resources (Nasdaq: PPTA) announced a public offering of 3,439,465 common shares in the United States. The company plans to use proceeds for down payments on long lead time materials and detailed engineering for its Stibnite Gold Project. BMO Capital Markets and National Bank of Canada Financial Markets are acting as joint lead book-running managers, with RBC Capital Markets and Cantor as joint book-running managers. The underwriters have a 30-day option to purchase up to additional 515,919 shares (15% of the offering).

Positive

• Secured funding for Stibnite Gold Project development
• Strong underwriting support from major financial institutions

Negative

• Potential shareholder dilution from new share issuance
• Additional 15% dilution possible if underwriters exercise their option

Insights

Financial Analyst

The announced public offering of 3,439,465 common shares with an additional 515,919 shares option for underwriters signals a significant capital raising effort. The involvement of major financial institutions like BMO Capital Markets and RBC Capital Markets as underwriters adds credibility to the offering. The stated use of proceeds for down payments on long lead time materials and detailed engineering for the Stibnite Gold Project indicates the company is moving forward with project development.

This dilutive event will impact existing shareholders, but provides necessary capital for project advancement. The timing and size of the offering suggests management's confidence in project progression, though the absence of pricing details makes it challenging to fully assess the dilution impact. The shelf registration format provides flexibility in execution but also indicates potential future capital needs.

BOISE, Idaho, Nov. 18, 2024 /PRNewswire/ - Perpetua Resources Corp. (Nasdaq: PPTA) (TSX: PPTA) ("Perpetua Resources" or the "Company") today announced the launch of a public offering of 3,439,465 shares of its common stock (the "Common Shares") in the United States ( the "Offering").

The Company expects to use the net proceeds of the Offering for down payments on long lead time materials, detailed engineering for its Stibnite Gold Project, and general corporate purposes.

The Common Shares will be offered by the Company with BMO Capital Markets and National Bank of Canada Financial Markets acting as joint lead book-running managers and RBC Capital Markets and Cantor acting as joint book-running managers (collectively, the "Underwriters"). 

Perpetua Resources intends to grant the Underwriters an option, exercisable for a period of 30 days from the date hereof, to purchase up to an additional 515,919 Common Shares representing up to 15% of the number of Common Shares to be sold pursuant to the Offering.

The Offering to the public in the United States is being made pursuant to the Company's effective shelf registration statement on Form S-3, including a base prospectus, previously filed with the Securities and Exchange Commission (the "SEC"). The Offering in the United States will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. You may obtain these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the base prospectus may be obtained from BMO Capital Markets Corp., Attn: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036.

This news release does not constitute an offer to sell or the solicitation of an offer to buy shares of Perpetua Resource's common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Perpetua Resources and the Stibnite Gold Project
Perpetua Resources Corp., 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 Stibnite Gold 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 and sustainable mining goals, the Stibnite Gold Project will be powered by one of the lowest carbon emissions grids in the nation and a portion of the antimony produced from the Stibnite Gold 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 $59.2 million in Defense Production Act Title III funding to advance construction readiness and permitting of the Stibnite Gold Project. Antimony trisulfide from Stibnite is the only known domestic source of antimony that can meet U.S. defense needs for many small arms, munitions, and missile types.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS OR INFORMATION 

Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-Looking Information includes, but is not limited to, disclosure regarding the conduct of the Offering; the granting of the Underwriters' over-allotment option; and the anticipated use of proceeds from the Offering. In certain cases, Forward-Looking Information can be identified by the use of words and phrases or variations of such words and phrases or statements such as "anticipate", "expect" "plan", "likely", "believe", "intend", "forecast", "project", "estimate", "potential", "could", "may", "will", "would" or "should". Forward-Looking Information are based on certain material assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. For further information on these and other risks and uncertainties that may affect the Company's business, see the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's filings with the SEC, including Perpetua's Annual Report on Form 10-K filed with the SEC on March 26, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the SEC, which are available at www.sec.gov and with the Canadian securities regulators, which are available at www.sedar.com. Except as required by law, Perpetua Resources does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

View original content:https://www.prnewswire.com/news-releases/perpetua-resources-announces-offering-of-common-shares-302308420.html

SOURCE Perpetua Resources Corp.

FAQ

How many shares is Perpetua Resources (PPTA) offering in its 2024 public offering?

Perpetua Resources is offering 3,439,465 common shares, with an additional option for underwriters to purchase up to 515,919 shares (15% of the offering) within 30 days.

What will Perpetua Resources (PPTA) use the proceeds from its 2024 share offering for?

The proceeds will be used for down payments on long lead time materials, detailed engineering for the Stibnite Gold Project, and general corporate purposes.

Who are the underwriters for Perpetua Resources' (PPTA) 2024 share offering?

BMO Capital Markets and National Bank of Canada Financial Markets are joint lead book-running managers, with RBC Capital Markets and Cantor as joint book-running managers.