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JPMorgan ( JPM ) invests $75 million for 3% stake in Perpetua

Resources ( PPTA )

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China's antimony export block prompts Western supply

scramble

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Agnico Eagle to invest $180 million in Perpetua

By Ernest Scheyder

Oct 27 (Reuters) - Antimony and gold miner Perpetua

Resources ( PPTA ) is the first investment from JPMorgan Chase's ( JPM )

$1.5 trillion investment fund for U.S. national

security, a move underscoring the company's key role in

producing a metal whose exports China has blocked and which is

used to make bullets and other weaponry.

Under the agreement, details of which were released on

Monday, JPMorgan ( JPM ) will invest $75 million of its own funds for a

nearly 3% stake in Perpetua, which is building the largest U.S.

antimony mine about 138 miles (222 km) north of Boise, Idaho.

The agreement was signed on Sunday and was expected to close

on Tuesday.

The bank, which holds roughly 20,000 shares of Perpetua

currently, according to LSEG data, will also have the option to

exercise $42 million in warrants within three years. There are

no existing U.S. sources of antimony, which is also used to make

solar panels, lubricants, flame retardants and other goods.

China, the world's largest antimony miner and processor, blocked

exports in late 2024, causing Western manufacturers to scramble

for fresh supply.

Announced earlier this month, JPMorgan's ( JPM ) Security and

Resiliency Initiative aims to offset what CEO Jamie Dimon said

was the "painfully clear" reality "that the United States has

allowed itself to become too reliant on unreliable sources of

critical minerals."

"With this investment, we are supporting a company in an

industry critical to national security and American resiliency,

precisely the focus of our new initiative," said Doug Petno,

co-CEO of JPMorgan's ( JPM ) commercial and investment bank division.

The mine, backed by billionaire investor John Paulson, will

supply more than 35% of America's annual antimony needs once it

opens by 2028 and also produce 450,000 ounces of gold each year.

The dual revenue stream is expected to keep the project

financially afloat regardless of any steps by Beijing to sway

markets. The site, which is under construction as of last week,

has estimated reserves of 148 million pounds of antimony and 6

million ounces of gold.

"This is all about putting America first again relative to

the supply chain, in this case for critical minerals," said Jon

Cherry, Perpetua's CEO.

AGNICO ALSO TO INVEST

In addition to the JPMorgan ( JPM ) investment, Toronto-based gold

miner Agnico Eagle will invest $180 million in Perpetua

for a 6.5% stake and help it develop its Idaho mine.

The mine was supported by both former President Joe Biden

and President Donald Trump, whose administration earlier this

year issued the final necessary permits.

Both investments were priced at Perpetua's closing stock

price last Friday.

The U.S. Export-Import Bank, the government's export credit

agency, is also considering a loan for Perpetua's project.

Perpetua must still find a partner to refine its antimony. The

company is in talks with Glencore ( GLCNF ), Trafigura, Clarios

and Sunshine Silver about a refining partnership and plans to

make a decision expected by the end of the year.

Perpetua's project is facing legal opposition from Idaho's

Nez Perce Tribe, which is concerned the mine could affect the

state's salmon population.