Trilogy Metals (TMQ) (TSE:TMQ) stock is soaring, up more than 170% in pre-market trading on Tuesday. The surge follows the White House announcement of a $35.6 million investment in Trilogy Metals. This gives the U.S. government a 10% ownership stake, along with warrants to acquire an additional 7.5% of the company.
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For context, Trilogy Metals focuses on exploring and developing base and precious metals in Alaska, including copper, nickel, and cobalt. The company holds a 50% stake in the Arctic Project through its joint venture, Ambler Metals LLC, with Australia’s South32 ($AU: S32) owning the other half.
More Details About the Investment
As part of this investment, the U.S. government, Trilogy Metals, Ambler Metals, and South32 are partnering to develop the Upper Kobuk Mineral Projects (UKMP), a group of mining projects in Alaska’s Ambler Mining District. This partnership is meant to support exploration and development of critical minerals in Alaska, while the Ambler Road Project will provide the infrastructure needed to access the mines.
Moreover, President Donald Trump approved the appeal of the Alaska Industrial Development and Export Authority, directing his administration to promptly issue the necessary authorizations for the project, which will provide road access to the Ambler Mining District. The executive order overturns the Biden Administration’s 2024 decision to block the project over environmental concerns.
Notably, the Ambler Mining District in northwestern Alaska is rich in minerals like copper, zinc, lead, gold, and silver, making it one of the most promising mining areas in the U.S. Meanwhile, the Ambler Road Project is a proposed 211-mile industrial road that would link the district to the Dalton Highway, providing crucial access for mining operations.
US Aims to Cut Reliance on China for Key Resources
The news came a week after the Trump administration acquired a 5% stake in another Canadian miner, Lithium Americas (LAC).
These investments are part of the government’s efforts to reduce reliance on China for critical minerals. According to Doug Burgum, U.S. Secretary of the Interior, the investment aims to secure critical mineral supplies and ensure that ownership of these resources benefits the American people. He added that these minerals are considered essential for both defense and industrial purposes, highlighting their strategic importance for the country.
The investments also part of a broader push by Western nations to decrease dependence on China for metals such as lithium, rare earth elements, and germanium, which are essential for energy, technology, and defense sectors.
Year-to-date, TMQ stock has gained 80%.
