Perpetua Resources Awarded Up to $40 Million in U.S. Army Funding to Advance Domestic Tungsten Supply for American Defense
Army adds $40 million in tungsten funding as its stock trades at a 52-week low.
Perpetua Resources Corp. (PPTA) announced a new 36-month award of up to US$40 million through the U.S. Army's Defense Ordnance Technology Consortium (DOTC), from Portfolio Acquisition Executive Agile Sustainment & Ammunition at Picatinny Arsenal. The funding is designated to evaluate the technical and economic feasibility of producing tungsten concentrate at the historical Stibnite Mining District in Idaho.
The agreement operates on a cost-share structure, with Perpetua matching the U.S. Government's contribution. The initial 18-month phase is expected to cost approximately US$18 million, shared equally between the two parties at roughly US$9 million each. Subsequent phases are subject to results and separate approvals. The scope of work includes surface exploration drilling to define a potential tungsten mineral resource, collection of material for laboratory and bench-scale metallurgical testing, and the permitting and engineering of an exploration decline to access tungsten mineralization beneath the Hangar Flats pit.
The release restates three drill intervals as previously reported, originally published on 6 August 2026: * 9.8 m grading 4.6% tungsten and 8.3% antimony * 22.9 m grading 1.2% W and 3.2% Sb * 3.4 m grading 1.5% W and 10.6% Sb
Additionally, an existing 550-kg sample from prior exploration grading 9.2% antimony and 4.2% tungsten will be used for metallurgical test work. The Hangar Flats pit is stated to contain approximately 1.37 moz of gold resources and over 95 Mlb of antimony resources, which are not included in the current mine plan or reported reserves. Access via underground mining may supplement the production profile, though any activity outside the permitted mine plan requires additional regulatory review and permitting.
Total U.S. Government awards to Perpetua for critical minerals now stand at US$126 million since 2022. In an administrative update, the company noted an amendment to 1,607,802 outstanding warrants exercisable at US$31.46 and US$38.93, extending their expiry to 28 April 2027, relying on TSX Company Manual s.602.1.
Perpetua Resources Corp. (PPTA) announced a strategic partnership with the U.S. Army and an amendment to an administrative warrant, marking a shift from its previous earnings-focused reporting. The company, which reported a net loss of US$97.5 million for the second quarter of 2026 and a six-month loss of US$146.2 million, held cash reserves of US$574.2 million as of 30 June 2026. These figures remain prior-period data and were not restated in the current release.
The partnership involves the U.S. Army funding up to 50% of a tungsten resource-definition and decline program at the Stibnite project, with a total potential award of US$40 million over 36 months. The initial 18-month phase commits approximately US$18 million, requiring Perpetua to contribute roughly US$9 million. This arrangement provides non-dilutive funding and third-party validation for the company’s tungsten strategy. The U.S. has had no commercial tungsten mining since 2015, making this a significant strategic development for the advanced developer, which carries a market capitalization of approximately US$2.9 billion.
The announcement also included an amendment to an administrative warrant, extending its expiry to April 2027. This change keeps 1.6 million warrants alive, with strike prices of US$31.46 and US$38.93, both of which are above the current spot price.
Market reaction to the news follows a period of volatility driven by earlier drill results. On 6 August 2026, Perpetua released drill numbers that caused the stock to spike from a close of $25.78 on 30 July to $32.10 on 5 August and $34.48 on 7 August. The stock has since fully round-tripped, closing at $23.31. As of 23 October 2026, the share price stood at $23.04, its 52-week low, representing a 54% drawdown from its high of $50.89 on 2 March 2026. The current valuation reflects investor discounting of permitting, financing, and schedule risks associated with the main gold-antimony build rather than expectations for tungsten zone repetition.
Perpetua Resources Corp. (Nasdaq: PPTA; TSX: PPTA), based in Boise, Idaho, is developing its wholly owned Stibnite Gold Project in the Stibnite-Yellow Pine district of Valley County, Idaho. The deposit is a high-grade, open-pit gold operation featuring associated antimony-silver deposits and a tungsten (scheelite) skarn/replacement overprint. Stibnite holds the only identified domestic antimony reserve in the United States.
The project’s reserves include 4.8 million ounces of gold and 149 million pounds of antimony, calculated at a US$1,600/oz gold price and 0.48 g/t Au cutoff. Resources comprise 1.5 million ounces Measured and Indicated and 1.6 million ounces Inferred, determined at US$1,500/oz gold and 0.45 g/t (sulphide) / 0.4 g/t (oxide) cutoffs.
Economic modeling as of 31 December 2025, using a base case of US$3,250/oz Au, US$40/oz Ag, and US$10/lb Sb, projects a life-of-mine NPV5% of US$6.045 billion, an after-tax IRR of 32.3%, and initial capital expenditure of approximately US$3.25 billion. For the early production years 1-4, the NPV5% is US$3.457 billion, with an IRR of 23.5% and an all-in sustaining cost (AISC) of US$498/oz. The production profile anticipates approximately 463,000 ounces of recovered gold per year in years 1-4, declining to 296,000 ounces per year for the life of the mine. Antimony production is estimated at 69 million pounds in the early phase and 106 million pounds over the life of the mine.
Perpetua has achieved several regulatory and operational milestones, including a final Record of Decision in January 2025, a final federal permit in May 2025, and designation as a White House Priority Project in April 2025. Early works construction is scheduled to begin in October 2025, following the appointment of Hatch as EPCM in December 2025. The company received EXIM board approval for a US$2.9 billion senior secured loan in May 2026. A final investment decision (FID) is targeted for 2026, with production targeted for 2029.
As of 30 June 2026, the company’s balance sheet showed US$574.2 million in unrestricted cash and US$60.9 million in restricted funds, with no debt and working capital of US$550.8 million. Total assets stood at US$773.5 million against total liabilities of US$53.7 million. With 125.1 million shares outstanding, the book value was US$5.75 per share. Strategic shareholders include Agnico Eagle (~6.4%) and JPMorganChase (~2.6%), with BlackRock, Vanguard, Van Eck, Sprott, and Paulson & Co. also on the register.