U.S. Government Takes 10% Stake in Canadian Mining Company Trilogy Metals for $35.6 Million, Boosts Domestic Critical Mineral Supplies

The US government will take a 10% stake in Canadian mining company Trilogy Metals for $35.6 million, with options to increase the stake in the future. The investment aims to secure critical mineral supplies, particularly copper, from Trilogy's mining interests in Alaska. The move comes after the US President signed an executive order directing the construction of a road to access the Ambler mining district. The partnership underscores the strategic importance of Trilogy's Upper Kobuk Mineral Projects in supporting US energy, technology, and national security priorities.

The U.S. government has announced a strategic investment in Canadian mining company Trilogy Metals (NYSE American: TMQ), taking a 10% stake for approximately $35.6 million. The investment, which is part of a broader effort to secure critical mineral supplies, particularly copper, aims to support national security and energy priorities. The move comes following the U.S. President's executive order directing the construction of a road to access the Ambler mining district.

The U.S. Department of War (DOW) will acquire approximately 8,215,570 units in Trilogy at $2.17 per unit, and a separate purchase plus a 10-year call option for 6,161,678 shares exercisable at $0.01 after the completion of the Ambler Access Project (Ambler Road). The DOW may appoint one independent director for three years, and Trilogy has agreed not to incur more than $1 billion in new third-party debt without DOW approval until January 1, 2029 Trilogy Metals Announces Strategic Investment by US Federal Government^[1].

The investment underscores the strategic importance of Trilogy's Upper Kobuk Mineral Projects in supporting U.S. energy, technology, and national security priorities. The Ambler Road project, which has been a contentious issue, is now being revisited under the new administration. The gravel road and mining project, north of Fairbanks, Alaska, is seen as crucial for accessing a large copper deposit worth more than $7 billion Trump approves Alaska mining road, stake in Canadian firm behind project^[2].

The transaction remains subject to regulatory and other approvals, including congressional reauthorization of the Defense Production Act and completion of the U.S. Government's FOCI review. Key dependencies include regulatory and stock exchange approvals, and a termination backstop of March 31, 2026 if those conditions are unmet Trilogy Metals Announces Strategic Investment by US Federal Government^[1].