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Perpetua Resources (TSX: PPTA; NASDAQ: PPTA) announced that its subsidiary, Perpetua Resources Idaho was awarded an Ordnance Technology Initiative Agreement (OTIA) of up to $15.5 million by the US Department of Defense (DoD).
The objective is to demonstrate a fully domestic antimony trisulfide supply chain using ore from the Stibnite gold project site for use in munitions. To meet this objective, the company plans to obtain additional core samples from the project site, conduct a pilot plant study, design a full-scale process circuit, and deliver a modular pilot plant for the DoD to use in further investigations.
According to Perpetua, antimony trisulfide is a key component for munitions. China, Russia, and Tajikistan control approximately 90% of antimony supply and the US has no domestically mined source of the critical mineral. Perpetua plans to re-establish domestic supply as a by-product of one of the highest-grade open pit gold resources in the US.
Under the OTIA, Perpetua will be reimbursed for these activities on a cost-plus fixed fee basis over a 24-month period. The estimate of up to $15.5 million is subject to adjustment based on scope, costs, budget, or other factors as the program advances.
Site visit: Perpetua Resources’ Stibnite gold project in Idaho named preferred alternative
“We are excited to expand our partnership with the Department of Defense and are proud to help demonstrate a fully domestic supply chain solution for the ammunition our troops need to keep our nation and our allies safe,” said Laurel Sayer, president and CEO of Perpetua Resources.
In December 2022, Perpetua received a technology investment of up to $24.8 million under Title III of the Defense Production Act (DPA). The objective of the funding, issued by the Air Force Research Laboratory, was to complete the environmental and engineering studies necessary to obtain the required permits for the production of antimony trisulphide.
