04:58 PM EDT, 03/21/2024 (MT Newswires) -- Perpetua Resources ( PPTA ) said late Thursday it signed an agreement with a unit of Franco-Nevada Corp. under which Perpetua sold a royalty on future silver production from the planned Stibnite Gold Project for an upfront cash payment of $8.5 million.

Franco-Nevada will get all of the payable silver by-product revenue over the life-of-mine, Perpetua said, adding that silver is expected to be under 0.3% of the estimated life-of-mine revenue.

The additional liquidity from the deal's upfront payment will complement the funding that Perpetua has obtained from the US Department of Defense, it said.

Proceeds will be used for general corporate purposes.

"We have been focused on minimizing equity dilution and this transaction combined with the full anticipated amount of Department of Defense funding represents over $80 million in non-dilutive capital," said Perpetua CFO Jessica Largent.

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