JPMorgan selects Perpetua Resources as the first investment in its $1.5 trillion security funds

Perpetua Resources, an antimony and gold mining company, is the first investment made by JPMorgan Chase’s $1.5 trillion fund to support U.S. National Security. This underscores the company’s important role in producing the metal that China has banned and is used for bullets and weapons.

JPMorgan, whose details were revealed on Monday, will invest $75m of its own money for a stake of nearly 3% in Perpetua. Perpetua is building the biggest U.S. mine of antimony about 138miles (222km) north of Boise.

The agreement was signed Sunday and expected to be closed on Tuesday. LSEG data shows that the bank currently holds 20,000 shares in Perpetua. The bank will have the option of exercising $42 million worth of warrants over a period three years. Antimony is not available in the United States. It's used for solar panels, lubricants and flame retardants as well as other products. China, which is the largest producer and exporter of antimony, has blocked its exports since late 2024. This forced Western manufacturers to scramble to find new supplies.

JPMorgan announced its Security and Resiliency Initiative earlier this month. CEO Jamie Dimon described it as a "painfully obvious" fact that the United States had become "too reliant" on unreliable mineral sources.

Doug Petno is the co-CEO for JPMorgan’s Commercial and Investment Bank division.

The mine, which is backed by billionaire John Paulson, can supply over 35% of America’s annual antimony requirements once it opens in 2028. It will also produce 450,000 gold ounces each year. The project's dual revenue stream should keep it financially stable, regardless of Beijing's attempts to influence the markets. The site is currently under construction and has an estimated reserve of 148,000,000 pounds of antimony, as well as 6,000,000 ounces gold.

Jon Cherry, CEO of Perpetua, said: "This is about putting America back in the forefront when it comes to supply chains, and this time for vital minerals."

AGNICO ALSO INVEST

Agnico, a Toronto-based gold mining company, will also invest $180m in Perpetua to acquire a 6.5% share and assist it with the development of its Idaho mine.

Both former President Joe Biden, and President Donald Trump's administration issued the necessary permits earlier this year.

Both investments were valued at the closing stock price of Perpetua on Friday. U.S. Export-Import Bank (the government's export credit agency) is also considering lending money to Perpetua for its project. Perpetua still needs to find a partner for antimony refinement. The company has been in discussions with Glencore Trafigura Sunshine Silver and Clarios about a refining partner and expects to make a final decision by the end the year.

The Nez Perce Tribe of Idaho is opposing Perpetua’s project, citing concerns that the mine will affect the salmon population in the state. (Reporting and editing by Leslie Adler; Additional reporting by Nupur Aand)

(source: Reuters)