Perpetua Resources, a company based in northern Idaho, has secured a letter of interest from the U.S. Export-Import Bank (EXIM) for a substantial loan of up to $1.8 billion. This financial support is intended for the development of an antimony and gold mine, aligning with Washington’s strategic efforts to reduce China’s dominance in the critical minerals sector.
The proposed loan, if finalized, would mark one of the largest investments by the U.S. government in a mining project and reflects the Biden administration’s increasing willingness to utilize federal funding to advance extractive ventures under more favorable terms than private lenders offer. This approach mirrors China’s longstanding practice of using state-backed financing for such projects.
EXIM’s letter of interest signifies Perpetua’s eligibility for two loan programs aimed at bolstering competition with Chinese counterparts. The loan is structured with a 15-year repayment period, longer than typical private financing terms, and offers flexibility in setting the interest rate to enhance competitiveness against Chinese mining operations.
To complement the loan, Perpetua will need to secure additional equity funding, potentially through stock issuance or royalty arrangements. The company, backed by prominent investor John Paulson, has met initial loan requirements and is poised to commence the formal application process, expected to span 12 months. The approval also enables Perpetua to engage with equipment suppliers as the project progresses.
The Pentagon has already allocated nearly $60 million for permitting activities related to the Stibnite mine, which involves remediation and expansion efforts at a site previously impacted by historical mining activities during World War Two. Perpetua’s CEO, Jon Cherry, views the approved loan as a pivotal component in advancing the project and ensuring its successful implementation.
EXIM clarified that letters of interest are preliminary and non-binding, indicating the agency’s readiness to consider financing for specific export transactions upon formal application submission.