Architectural Cases

A significant financial boost has been achieved by Perpetua Resources, as it successfully closed an expanded public offering and a private placement. This move raises $425 million in total funding to drive the development of the Stibnite Gold Project located in the United States. The funds will be used not only for project construction but also to support exploration efforts, working capital, and general corporate purposes. Simultaneously, the company is pursuing additional financing options through EXIM and other agreements.

Perpetua Resources has announced the closure of its increased public offering valued at $325 million. In addition, a private placement with Paulson & Co. brought in another $100 million. These funds are crucial components of a larger comprehensive financing plan that includes up to $2 billion in potential project financing from EXIM. While the due diligence process continues, discussions on financial assurances for reclamation bonds are also progressing. Furthermore, an option exists for underwriters to increase the offering proceeds by approximately $374 million if fully exercised.

Raising Capital Through Strategic Partnerships

The recent financial activities undertaken by Perpetua Resources underscore a strategic approach to securing the necessary funds for the ambitious Stibnite Gold Project. By combining a substantial public offering with a targeted private placement, the company has effectively diversified its funding sources. This dual strategy ensures robust equity backing while maintaining flexibility for future financial needs.

Through its upsized public offering, Perpetua Resources secured $325 million by issuing 24,622,000 common shares priced at $13.20 each. Additionally, a private placement with Paulson & Co. added $100 million via the issuance of 7,575,757 common shares. Such partnerships reflect the confidence of major investors in the project's viability and long-term prospects. Moreover, the involvement of leading financial institutions like National Bank of Canada Financial Markets and BMO Capital Markets underscores the credibility of this financing initiative. An optional over-allotment provision allows further enhancement of the total funds raised.

Exploring Additional Financing Opportunities

Beyond immediate capital inflows, Perpetua Resources is actively exploring supplementary financing avenues to ensure complete coverage of the Stibnite Gold Project’s requirements. This includes ongoing negotiations with EXIM for project-specific debt financing and arrangements concerning reclamation bonds. These initiatives aim to secure both short-term liquidity and long-term stability for the venture.

In May 2025, Perpetua Resources submitted an application to EXIM seeking up to $2 billion in project financing. With due diligence currently underway, the expected closure of this debt financing is anticipated for 2026. Upon approval, these funds will address construction costs amounting to $2.2 billion, along with provisions for cost overruns, debt servicing, and operational expenses. Concurrently, advanced discussions regarding financial assurances for reclamation bonds involve securing a $155 million guarantee and indemnification package, complemented by proceeds ranging between $200 million and $250 million. This could potentially take the form of a gold net smelter return royalty or a gold stream agreement, scheduled for finalization by summer 2025. Such measures align closely with regulatory requirements tied to federal and state permits, ensuring compliance and sustained progress towards the project’s successful completion.

The Senate Finance Committee has unveiled a draft proposal to enhance the Qualified Small Business Stock (QSBS) tax exemption. This initiative aims to significantly boost incentives for investors and founders in emerging growth companies by altering key provisions within the current framework. The proposed changes include a phased-in gain exclusion, an increased cap on eligible gains, and a higher threshold for aggregate gross assets. These modifications are designed to align with contemporary economic conditions and encourage further investment in small active businesses.

This overhaul marks the most substantial expansion of QSBS benefits since 2010, although it will only apply to stock issued post-enactment. Investors and companies must evaluate how these legislative updates might affect their strategies concerning QSBS-eligible stock and issuance timing.

Enhanced Gain Exclusion Phasing

The proposed legislation introduces a more flexible approach to gain exclusion eligibility, replacing the existing five-year cliff requirement with a graduated system. Under the new rules, investors holding QSBS for at least three years would enjoy a 50% exclusion, while those maintaining holdings for four years or more could claim a 75% exclusion. Stocks held beyond five years would retain the full 100% exclusion benefit.

This transition from a rigid time frame to a phased-in model offers greater flexibility for investors. By allowing partial exclusions after shorter holding periods, the SFC Bill acknowledges the varying timelines associated with business development and capital appreciation. Additionally, the effective tax rates under this scheme—14% for three-year holdings and 7% for four-year holdings—remain competitive compared to standard capital gains rates. This adjustment not only simplifies planning but also reduces the financial burden on early-stage investors who may need liquidity before reaching the five-year mark.

Raised Caps and Asset Thresholds

To accommodate larger investments and expanding businesses, the SFC Bill proposes raising both the per-issuer cap on excluded gains and the aggregate gross asset threshold. The former increases from $10 million to $15 million (or $10 million for married taxpayers filing separately), indexed for inflation starting in 2026. Similarly, the latter rises from $50 million to $75 million, also subject to annual inflation adjustments.

These upward revisions reflect the evolving nature of small businesses in today's economy. Many startups require substantial initial funding and experience rapid growth, often exceeding previous asset limits. By increasing the thresholds, the SFC Bill ensures that more companies qualify for QSBS status, thereby broadening the scope of eligible beneficiaries. Moreover, indexing these figures for inflation helps maintain their relevance over time, preventing future legislative gaps. Investors and entrepreneurs should carefully assess how these expanded parameters influence their decision-making processes regarding stock acquisitions and strategic planning.