Perpetua Resources Signs $131.7M Contract With ATCO For 1,010-Person Camp At Stibnite Gold Project
Benzinga Newsdesk 1 year ago
NewsContracts
On August 29, 2025, Perpetua Resources Idaho, Inc. ("PRII"), a wholly owned subsidiary of Perpetua Resources Corp. (the "Company"), entered into a camp supply and installation agreement (the "Agreement") with ATCO
On August 29, 2025, Perpetua Resources Idaho, Inc. ("PRII"), a wholly owned subsidiary of Perpetua Resources Corp. (the "Company"), entered into a camp supply and installation agreement (the "Agreement") with ATCO Structures & Logistics (USA) Inc. ("ATCO") for the design, construction and installation of a 1,010-person turnkey camp accommodation and site package (the "Facilities") for the Company's Stibnite Gold Project (the "Project"). Unless defined herein, capitalized terms have the same meanings as in the Agreement. Except for certain specified owner and third-party work outlined in the Agreement, the work to be performed by ATCO includes all of the work required for the procurement of all camp infrastructure, transportation and delivery of materials to the site, performance of all site preparation, installation, and utility tie-ins, and commissioning of the facilities for occupancy. ATCO is obligated to perform its work in accordance with good engineering and construction practices and applicable laws, codes and standards. ATCO bears risk of loss of the Work until substantial completion of the applicable milestone, subject to certain exceptions set forth in the Agreement.
Under the Agreement, PRII agreed to pay to ATCO a contract price of $131.7 million (the "Contract Price") for the Work under the Agreement. The Agreement includes standard provisions allowing for equitable adjustments to the Contract Price, including in connection with certain tax events, scope modifications, or demobilization exclusions at PRII's election. If ATCO fails to achieve substantial completion of the applicable portion of the work prior to September 24, 2026 (as may be adjusted pursuant to the terms of the Agreement), ATCO will be liable for liquidated damages up to a specified cap. ATCO is also required to furnish a performance bond for a portion of the Contract Price. PRII is responsible for certain costs related to the bond.
In the event of an uncured default by ATCO, PRII may terminate the Agreement and will have the right, but not the obligation, to exclude ATCO from the Site and take possession of all materials thereon owned by PRII; accept assignment of Subcontracts; and finish the Work by whatever reasonable method PRII may deem expedient. Following termination for cause, ATCO would be liable to PRII for damages and excess costs incurred by PRII to complete construction. PRII also has the right to terminate the Agreement for convenience. If PRII fails to cure a default within the requisite cure period after ATCO provides notice thereof to PRII, and if no specified lender cures such default after notice thereof, ATCO may wind down operations and seek payment pursuant to the terms of the Agreement. PRII may terminate the Agreement for convenience by giving 30 days' notice to ATCO. In the event of a termination for convenience, PRII would be obligated to pay ATCO for Work properly executed and materials satisfactorily supplied; costs incurred in terminating, preserving and protecting the Work; and demobilization costs.