TLDR
- Trilogy Metals shares jumped over 220% in premarket trading after the White House announced a $35.6 million investment in the Canadian minerals explorer.
- The investment gives the U.S. government a 10% stake in Trilogy Metals, plus warrants to acquire an additional 7.5%.
- President Trump approved permits for the Ambler Road project in Alaska, reversing the Biden administration’s 2024 decision to block the project.
- The partnership will develop the Upper Kobuk Mineral Projects in Alaska’s Ambler Mining District, which contains rich deposits of copper, zinc, lead, gold, and silver.
- This marks the second recent government investment in mining, following a 5% stake in Lithium Americas last week, as part of efforts to reduce U.S. reliance on China for critical minerals.
Trilogy Metals stock exploded in premarket trading on Tuesday, climbing more than 220% after the White House revealed a major investment in the company. The stock was trading up 222% at 12:50 p.m. London time.
The surge came after the Trump administration announced a $35.6 million investment in the Canadian minerals explorer. This deal makes the U.S. government a 10% shareholder in Trilogy Metals.
The investment also includes warrants that would allow the government to acquire an additional 7.5% of the company. It’s the second mining investment in a week after the administration took a 5% stake in Lithium Americas.
The partnership focuses on developing the Upper Kobuk Mineral Projects in Alaska’s Ambler Mining District. This area contains some of the world’s richest copper deposits, along with zinc, lead, gold, and silver.
Trilogy Metals holds a 50% stake in the Arctic Project through Ambler Metals LLC. Australia’s South32 owns the other half.
Trump Reverses Biden Decision on Ambler Road
President Trump approved permits for the controversial Ambler Road project on Monday. The decision overturns the Biden administration’s 2024 rejection of the project.
The Ambler Road is a proposed 211-mile industrial road through Alaskan wilderness. It would connect the mining district to the Dalton Highway.
Trilogy Metals welcomed the decision in a statement. The company said the order “reflects a renewed federal commitment to responsible resource development in Alaska.”
The road project has faced opposition from environmental groups. Critics say the road will damage landscapes that support local communities and wildlife.
However, the Trump administration views the infrastructure as essential for accessing critical minerals. These resources are needed for energy infrastructure, defense technologies, and manufacturing.
Push to Cut China Dependence
The investment is part of a broader strategy to reduce U.S. reliance on China for critical minerals. China currently dominates the global supply chain for these resources.
Chinese mines produce nearly 70% of the world’s rare earth supply. China also processes almost 90% of these materials worldwide.
This means China imports raw materials from other countries and refines them. Western officials have called this supply chain dominance a strategic challenge.
U.S. Secretary of the Interior Doug Burgum said the investment aims to secure critical mineral supplies for the American people. He emphasized that these minerals are essential for both defense and industrial purposes.
The government partnership with Trilogy Metals and Ambler Metals will support exploration and development in the region. The Ambler Mining District is considered one of the most promising mining areas in the United States.
Demand for critical minerals is expected to grow as clean energy projects expand. The minerals are used in batteries, solar panels, wind turbines, and electric vehicles.
Trilogy Metals shares have gained 80% year-to-date before Tuesday’s premarket surge.
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