Investing.com -- Shares of Perpetua Resources Corp. (NASDAQ:PPTA) soared 19% in premarket trading Monday following the company's announcement that the US Forest Service has approved its Stibnite Gold Project in Idaho.
National Bank analysts highlighted the project's potential to provide a significant domestic source of the critical mineral antimony, alongside gold extraction.
The company's press release emphasized the expected creation of 550 jobs in rural Idaho during the operational phase of the project. This development is seen as a major step forward for Perpetua Resources, potentially positioning it to become a key player in the U.S. supply of antimony.
National Bank analyst Mike Parkin noted, “The Stibnite Gold Project could become the first U.S. domestic source of antimony for the U.S. government if developed, supplying about one third of domestic demand.”
Parkin expects a construction decision to be made in the second quarter and maintains an outperform rating with a C$22 price target on the stock.
The approval marks a pivotal moment for Perpetua Resources as it moves closer to contributing to the U.S. government's domestic demand for antimony, a material used in a variety of applications from flame retardants to electronics.
The Stibnite Gold Project has been closely watched by investors due to its strategic importance and potential economic impact. With the Forest Service's approval, Perpetua Resources is now positioned to advance to the next phase of development, which includes a construction decision that is keenly anticipated by the market.
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