The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Perpetua Resources Corp. (“Perpetua” or the “Company”) (NASDAQ: PPTA) securities between April 17, 2024, to February 13, 2025, inclusive (the “Class Period”). Perpetua investors have until May 20, 2025 to file a lead plaintiff motion.

What Happened?

On February 13, 2025, Perpetua published an updated cash flow model for its project of the restoration and redevelopment of an Idaho mine, referred to as the Stibnite Gold Project, revealing additional capital expenses of $952 million, more than 75% above the original estimate presented to investors. The Company attributed the price increase on increased costs on inflation, indirect costs, higher mining costs, and direct decisions made with respect to the project, including the choice to change the design of the electrical poles from timber to steel and the decision to “buy-and-build instead of lease the oxygen plant.”

On this news, Perpetua’s stock price fell $2.68, or 22.4%, to close at $9.29 per share on February 14, 2025, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Perpetua’s suggestion of a mere 10% to 20% increase in cost for the Stibnite Gold Project fell well short of reality; (2) the true impact of inflation, increased costs, and, most importantly, decisions management made resulted in a drastic increase in the initial capital expenditure required for the Stibnite Gold Project; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.