Shares of Perpetua Resources surged 10% to $18.26 Monday after the U.S. Army awarded the Idaho miner up to $40 million to explore whether tungsten can be commercially produced again at its Stibnite site — a bet on ending America's total dependence on imported tungsten. The pop reverses a rough stretch: the stock was down roughly 31% year-to-date before this announcement , raising the question of whether a government study contract truly changes the company's financial trajectory.
• Washington Keeps Doubling Down on Stibnite. This award brings total U.S. government funding to Perpetua for critical minerals to $126 million since 2022. That figure now includes a separate antimony pilot plant at Idaho National Laboratory and, critically, a $2.9 billion EXIM Bank loan approved in May to develop the broader $1.3 billion Stibnite Gold Project . Each new federal dollar signals bipartisan commitment to the site, reducing the political risk that funding could be clawed back.
• Only $9 Million Is Actually Committed From the Army — For Now. The initial 18-month phase is expected to cost approximately $18 million, shared equally between Perpetua and the Army.
Subsequent phases depend on exploration results, engineering progress, and incremental government approval. Investors should recognize this is study-phase money — drilling, lab tests, and permitting — not construction capital. The full $40 million is a ceiling, not a guarantee.
• Tungsten Adds a Third Revenue Leg, but It's Still Theoretical. Stibnite is already designed to produce gold and antimony. Recent drilling returned grades including 9.8 meters at 4.6% tungsten and 8.3% antimony — encouraging, but far from a bankable resource. The U.S. has had no commercial tungsten mining since 2015 and relies entirely on imports , so a domestic source would carry strategic premium. Still, proving a resource, building processing capability, and reaching production are years away.
• The Stock Had Room to Bounce — and the News Gave It a Reason. The shares had fallen about 12% in just the prior seven trading days , meaning the 10% jump essentially reclaims lost ground rather than breaking new territory. At $18.26, the stock sits below its level from just a week ago. The award validates the thesis but hasn't yet changed the economics. What would? Confirmation of a high-grade tungsten resource, or a final investment decision on the gold mine expected in the second half of 2026.