Perpetua Resources Wins Up to $40M Army Deal for Tungsten Supply

Perpetua Resources has secured a funding agreement of up to $40 million through the Defense Ordnance Technology Consortium, with the U.S. Army backing the company's efforts to establish a domestic tungsten supply chain critical to American defense manufacturing.

The agreement marks a significant expansion of Perpetua's critical minerals program, which previously centered on antimony and gold at its Stibnite Gold Project in Idaho. Tungsten now represents a second strategic pillar, reflecting growing federal urgency to reduce dependence on foreign sources — particularly China — for materials essential to weapons systems and military hardware.

Read more Diebold Nixdorf, Euronet to Partner on Global ATM Network Overhaul →

Funding will be directed toward drilling campaigns, metallurgical test work, and construction of a decline — an angled underground access tunnel — into the Hangar Flats deposit, which the company describes as hosting high-grade tungsten mineralization. The decline is intended to provide direct access for bulk sampling and further resource delineation.

The Defense Ordnance Technology Consortium serves as the contracting vehicle, a structure that allows the Department of Defense to move quickly with industry partners on priority technology and supply-chain initiatives without full competitive procurement timelines. For Perpetua, the arrangement represents validation from the Pentagon that its Idaho assets carry strategic value beyond their commercial potential.

The award underscores a broader U.S. government push to onshore production of critical minerals, a trend accelerated by supply-chain vulnerabilities exposed during recent geopolitical disruptions. Tungsten is used in armor-piercing ammunition, cutting tools, and a range of defense applications where no ready substitute exists. Continue reading at All Financial Services & Investing.