Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) was conditionally awarded up to US$34.6 million (US$34.6M) by the U.S. Department of Defense under the existing Technology Investment Agreement (TIA), reported Cantor Fitzgerald Mike Kozak in a Feb. 12 research note.
"This additional financial support from the DOD should fully fund Perpetua's Stibnite gold-antimony project through completion of the federal permitting process," Kozak wrote.
The analyst reiterated the dates the U.S. Forest Service has guided to for completing the key steps of this process: Q2/24 for the Final Environmental Impact Statement and a Draft Record of Decision and Q4/24 for the Final Record of Decision.
Possible gain of 338%
Given the news, Cantor maintained its Speculative Buy rating and CA$16.50 per share target price on the Idaho-based mining company, currently trading at about CA$3.77 per share, noted Kozak.
The difference between these prices reflects a significant potential return for investors, of 338%.
Perpetua remains rated Speculative Buy.
Agreement must be amended
To receive the US$34.6M in nondilutive cash infusion, Kozak pointed out, Perpetua must submit a modified TIA outlining the work necessary to advance Stibnite through permitting and readiness for construction.
The company intends to compete this by late Q1/24.
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