JPMorgan invests $75 million for 3% stake in Perpetua Resources
China’s antimony export block prompts Western supply scramble
Agnico Eagle to invest $180 million in Perpetua
Oct 27 (Reuters) – Antimony and gold miner Perpetua Resources (PPTA.O), opens new tab is the first investment from JPMorgan Chase’s (JPM.N), opens new tab$1.5 trillion investment fund for U.S. national security, a move underscoring the company’s key role in producing a metal whose exports China has blocked and which is used to make bullets and other weaponry.
Under the agreement, details of which were released on Monday, JPMorgan will invest $75 million of its own funds for a nearly 3% stake in Perpetua, which is building the largest U.S. antimony mine about 138 miles (222 km) north of Boise, Idaho.
The agreement was signed on Sunday and was expected to close on Tuesday.
The bank, which holds roughly 20,000 shares of Perpetua currently, according to LSEG data, will also have the option to exercise $42 million in warrants within three years. There are no existing U.S. sources of antimony, which is also used to make solar panels, lubricants, flame retardants and other goods.
China, the world’s largest antimony miner and processor, blocked exports in late 2024, causing Western manufacturers to scramble for fresh supply.
Announced earlier this month, JPMorgan’s Security and Resiliency Initiative aims to offset what CEO Jamie Dimon said was the “painfully clear” reality “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,” said Doug Petno, co-CEO of JPMorgan’s commercial and investment bank division.
The mine, backed by billionaire investor John Paulson, will supply more than 35% of America’s annual antimony needs once it opens by 2028 and also produce 450,000 ounces of gold each year.
The dual revenue stream is expected to keep the project financially afloat regardless of any steps by Beijing to sway markets. The site, which is under construction as of last week, has estimated reserves of 148 million pounds of antimony and 6 million ounces of gold.
“This is all about putting America first again relative to the supply chain, in this case for critical minerals,” said Jon Cherry, Perpetua’s CEO.
AGNICO ALSO TO INVEST
In addition to the JPMorgan investment, Toronto-based gold miner Agnico Eagle (AEM.TO), opens new tab will invest $180 million in Perpetua for a 6.5% stake and help it develop its Idaho mine.
The mine was supported by both former President Joe Biden and President Donald Trump, whose administration earlier this year issued the final necessary permits.
Both investments were priced at Perpetua’s closing stock price last Friday.
The U.S. Export-Import Bank, the government’s export credit agency, is also considering a loan for Perpetua’s project.
Perpetua must still find a partner to refine its antimony. The company is in talks with Glencore (GLEN.L), opens new tab, Trafigura, Clarios and Sunshine Silver about a refining partnership and plans to make a decision expected by the end of the year.
Perpetua’s project is facing legal opposition from Idaho’s Nez Perce Tribe, which is concerned the mine could affect the state’s salmon population.
Reporting by Ernest Scheyder; additional reporting by Nupur Anand; Editing by Leslie Adler
Ernest Scheyder is a senior correspondent covering critical minerals and the global energy transition, as well as the author of “The War Below: Lithium, Copper, and the Global Battle to Power our Lives,” which was longlisted for the 2024 National Book Award and was named the American Energy Society’s Energy Book of the Year. He previously wrote about the U.S. shale revolution – drawing on a two-year stint based in oil-rich North Dakota – as well as politics and the environment. A native of Maine, Scheyder is a graduate of the University of Maine – where he was named a distinguished alumnus in 2021 – and Columbia Journalism School.
