TLDR
- Trilogy Metals stock skyrocketed 220% in premarket trading after a $35.6 million U.S. government investment
- The deal gives Washington a 10% ownership stake plus warrants for another 7.5% of the company
- Trump approved the Ambler Road project in Alaska, reversing Biden’s 2024 environmental rejection
- The investment targets critical minerals like copper, zinc, and gold in Alaska’s Ambler Mining District
- This is the second mining investment in a week as the U.S. works to reduce dependence on China
Trilogy Metals stock experienced a massive premarket rally on Tuesday, jumping over 220% after the White House announced a strategic investment in the Canadian minerals explorer. The shares traded at $6.72, up from $2.09 at the previous close.
The Trump administration revealed a $35.6 million investment that secures a 10% stake in Trilogy Metals. The deal also includes warrants allowing the government to purchase an additional 7.5% of the company.
This marks the second major mining investment in recent weeks. Last week, the administration acquired a 5% stake in Lithium Americas as part of a broader strategy to secure domestic mineral supplies.
Alaska Mining Project Gets Green Light
President Trump approved permits for the Ambler Road project on Monday. The decision reverses the Biden administration’s 2024 rejection of the controversial infrastructure plan.
The Ambler Road is a proposed 211-mile industrial route through Alaskan wilderness. It would connect the mineral-rich Ambler Mining District to the Dalton Highway, providing essential access for mining operations.
Trilogy Metals holds a 50% stake in the Arctic Project through its joint venture Ambler Metals LLC. Australian mining company South32 owns the remaining 50%.
The Ambler Mining District contains some of the world’s richest copper deposits. The region also holds valuable concentrations of zinc, lead, gold, and silver.
Trilogy Metals said in a statement that Trump’s order “reflects a renewed federal commitment to responsible resource development in Alaska.” The company emphasized the importance of these minerals for energy infrastructure, defense technologies, and manufacturing.
Reducing China’s Mineral Dominance
The investment is part of Washington’s effort to break China’s grip on critical mineral supply chains. China currently produces nearly 70% of the world’s rare earth minerals and processes almost 90% globally.
U.S. Secretary of the Interior Doug Burgum stated the investment aims to secure critical mineral supplies for American citizens. He highlighted the strategic importance of these resources for both defense and industrial applications.
The partnership between the U.S. government, Trilogy Metals, Ambler Metals, and South32 will develop the Upper Kobuk Mineral Projects. These mining operations are considered essential for American energy independence and national security.
Critics of the Ambler Road project argue it will damage wilderness areas and disrupt local communities and wildlife. Environmental groups had successfully blocked the project under the previous administration.
However, supporters point to growing demand for critical minerals as clean energy adoption accelerates. These materials are essential components in batteries, solar panels, wind turbines, and electric vehicles.
Trilogy Metals shares have gained 80% year-to-date before Tuesday’s premarket explosion. The stock trades on the NASDAQ under the ticker TMQ.
The government’s investment includes participation in future funding rounds and board representation rights.
