11:09 AM EST, 12/09/2024 (MT Newswires) -- (Adds analyst comment; updates shares.)

Perpetua Resources ( PPTA ) said Monday it agreed to explore antimony processing opportunities in Idaho with Sunshine Silver Mining & Refining.

Under the terms of the agreement, the companies will evaluate the technical potential for processing and refining antimony from Perpetua's Stibnite gold project in Idaho at the Sunshine mine complex.

"The Stibnite gold project is the only identified domestic reserve of antimony, and with final federal decisions expected in a matter of weeks, Perpetua is ready to work with U.S. companies to help secure domestic production of antimony," said chief executive Jon Cherry.

Antimony is essential for national defense, clean energy and technology applications, the companies said, adding that China, which dominates antimony production, recently enhanced a ban on exports to the United States.

"A fully American antimony supply chain is paramount for U.S. national and economic security," said Heather White, CEO of Sunshine Silver. "We are confident that Sunshine can process and produce high-grade antimony here in Idaho as we have done in the past."

National Bank of Canada maintained its outperform rating and $22.00 price target on Perpetua shares following the news.

The bank said its outperform rating is driven by its belief that there is potential for a further re-rating higher on an EV/GEO valuation basis for Perpetua's shares given the numerous positive factors tied to the Stibnite gold project.

Perpetua shares were last seen up $0.15 to $17.49 on the Toronto Stock Exchange.

Price: 17.50, Change: +0.16, Percent Change: +0.92