DOD Awards $6.9M to US Mining Co. With Antimony Project

Source: Mike Niehuser 06/13/2025

Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) will use the funds to assess the feasibility of using ore from Stibnite to produce military-grade antimony trisulfide, noted a ROTH Capital Partners report.

Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) was awarded another tranche of funds, this time US$6.9 million (US$6.9M), by the U.S. Army’s Defense Ordnance Technology Consortium (DOTC) to further test the antimony at the company’s Stibnite gold project in Idaho, reported Mike Niehuser, managing director and senior research analyst at ROTH Capital Partners, in a June 9 research note.

“As federal agencies are required under Executive Orders to collaborate, we view this as a favorable indication for [Perpetua to receive] funding by the Export-Import Bank of the United States (EXIM)” for which the company recently formally applied, Niehuser wrote.

Stock is a Buy

On the news, ROTH maintained its US$19 per share target price on the U.S.-based explorer, trading at the time of Niehuser’s report at US$17.37 per share, the analyst noted. The target implies a potential return of 9.4%.

Perpetua remains a Buy.

As of June 6, the company has 71.54 million outstanding shares, a market cap of $1.2 billion and a 52-week range of US$5.05–17.37 per share.

What Funds Are For

The latest DOTC grant, for US$6.9M, is for Perpetua to apply toward assessing the feasibility of producing military-grade antimony trisulfide from ore mined at its Stibnite project. The DOTC’s previous US$15.5M award to the company was for it to develop and deliver a flexible, modular pilot plant to the U.S. Army to process antimony from Stibnite and other critical materials of import to the U.S. Department of Defense (DOD). Including the US$6.9M and the US$15.5M, Perpetua has received a total of about $80M in funding from the DOD to date.

Niehuser reiterated that antimony trisulfide, a nonreplaceable component of about 300 types of munitions, is produced primarily in China. Last September, the country imposed restrictions on its exports of this compound to the U.S.

Full Funding Expected

Given that projected revenue from antimony at Stibnite is much lower than it is for gold, it perhaps was the case that the U.S. military’s “growing anxiety” over the domestic shortage of antimony may have influenced the positive record of decision on the project, Niehuser purported, and, thus, may read through to EXIM financing. Therefore, ROTH believes EXIM will grant Perpetua debt financing in the $2 billion ($2B) amount requested.

“Given the current Administration’s ‘whole of government’ approach, we believe that the formal application of $2B was completed in consultation with EXIM, and approval of financing may be forthcoming in the very near term,” wrote Niehuser.

ROTH also believes that once Perpetua gets an approval from EXIM, the company will be able to secure any additional funds it needs, through other avenues, such as grants, nondilutive offtake agreements or raising additional equity.

Next Step is Construction

With favorable terms from the EXIM and funding through other nondilutive sources, Perpetua could advance Stibnite to construction,” Niehuser added. The company expects to start construction in mid-2025.

“Upon financing and formal commencement of construction, this should lead to a positive rerating of the stock price,” Niehuser wrote.

He pointed out that at the consensus gold price of US$2,100 per ounce, Stibnite is economic. It would yield a net present value discounted at 5% of $1.39M and an internal rate of return of 15.4%. Payback would be 3.2 years.

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1. Perpetua Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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Disclosures for Roth Capital Partners and Perpetua Resources Corp., June 9, 2025:

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

For important disclosure information regarding the companies in this summary report, please contact the Director of Research at (800) 678-9147 or write to: ROTH Capital Partners, LLC, Attention: Director of Research, 888 San Clemente Drive, Newport Beach, CA 92660

Disclosures: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Perpetua Resources Corp..

Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has managed or co-managed a public offering for Perpetua Resources Corp..

ROTH Capital Partners, LLC and its affiliates expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2025. Member: FINRA/SIPC.

( Companies Mentioned: PPTA:TSX; PPTA:NASDAQ, )

Source: https://www.streetwisereports.com/article/2025/06/13/dod-awards-6-9m-to-us-mining-co-with-antimony-project.html