Perpetua Resources, an antimony and gold mining company, is the first investment made by JPMorgan Chase. $1.5 trillion investment fund for U.S. national security, highlighting the company’s critical role in manufacturing a metal needed to produce bullets and other weapons, the exports of which China has banned.
JPMorgan will invest $75 million of its own assets for a nearly 3% share in Perpetua, which is constructing the largest antimony mine in the United States approximately 138 miles (222 km) north of Boise, Idaho, according to the agreement, the specifics of which were made public on Monday.
The deal was supposed to close on Tuesday after being signed on Sunday.
According to LSEG data, the bank presently owns about 20,000 shares in Perpetua; within three years, it will also be able to execute $42 million in warrants.
Antimony, which is also used to create solar panels, lubricants, flame retardants, and other products, is currently unavailable in the United States.
In late 2024, China, the largest miner and processor of antimony worldwide, banned exports, forcing Western producers to rush for new supplies.
The goal of JPMorgan’s Security and Resiliency Initiative, which was unveiled earlier this month, is to counteract what CEO Jamie Dimon described as the “painfully clear” truth “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,” JPMorgan’s commercial and investment bank division co-CEO Doug Petno stated.
In addition to producing 450,000 ounces of gold annually, the mine, supported by billionaire investor John Paulson, will provide more than 35% of America’s yearly antimony demands once it opens by 2028.
Regardless of Beijing’s efforts to influence markets, the project is anticipated to remain financially viable thanks to the dual revenue stream.
As of last week, building was underway at the location, which is thought to contain 6 million ounces of gold and 148 million pounds of antimony.
“This is all about putting America first again relative to the supply chain, in this case for critical minerals,” stated Jon Cherry, CEO of Perpetua.
AGNICO TO MAKE AN INVESTMENT
Agnico Eagle, a gold miner located in Toronto, will contribute $180 million to Perpetua for a 6.5% share and assist in the development of its Idaho mine in addition to the JPMorgan investment.
Both former President Joe Biden and President Donald Trump, whose government gave the final licenses earlier this year, backed the mining.
Both stakes were valued at last Friday’s closing stock price of Perpetua.
A loan for Perpetua’s project is also being considered by the government’s export credit agency, the U.S. Export-Import Bank.
To perfect its antimony, Perpetua still needs a partner.
The company intends to make a decision by the end of the year after discussing a refining cooperation with Glencore, Trafigura, Clarios, and Sunshine Silver.
The Nez Perce Tribe of Idaho is legally opposing Perpetua’s project because they fear the mine will have an impact on the state’s salmon population.
