US Takes 10% Equity On Trilogy Metals For $35.6M, Sends Shares Over 230%

Another mining firm got picked up from the US shopping spree for equity as Trilogy Metals (TSX: TMQ) said the US federal government agreed to invest approximately $35.6 million and take about 10% of the company under a binding letter of intent signed with Trilogy, South32, and Ambler Metals.

The news sent company shares over 231% pre-market.

The deal with the Department of Defense (now War) allocates roughly $17.8 million directly to Trilogy for 8,215,570 units at $2.17 per unit, each unit comprising one common share and three-quarters of a 10-year warrant. Each full warrant is exercisable at $0.01 per share following completion of the Ambler Access Project.

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A second $17.8 million payment goes to South32 for 8,215,570 Trilogy shares it currently holds plus a 10-year call option to buy a further 6,161,678 Trilogy shares from South32 at $0.01 per share, exercisable after Ambler Road completion. South32 will reinvest the entire proceeds into Ambler Metals, the 50/50 joint venture that owns the Upper Kobuk Mineral Projects.

The US government has the right to appoint one independent third-party director to Trilogy’s board for three years, and Trilogy agrees through January 1, 2029 not to incur third-party indebtedness for borrowed money exceeding an aggregate $1 billion without prior written US approval.

The parties will negotiate a framework agreement covering Ambler Road permitting, financing, and construction. Part of the deal is working “in good faith” to include future UKMP permit applications in the FAST-41 process to expedite mine permitting, and coordinating with Alaska as the federal government helps facilitate financing for the industrial-use-only road owned by AIDEA.

Closing is conditioned on US congressional reauthorization of the Defense Production Act and completion of the government’s Foreign Ownership, Control, or Influence review. Trilogy intends to rely on TSX interlisted issuer exemptions and notes the securities are being offered in a non-public transaction and are unregistered under the US Securities Act.

Ambler Metals’ UKMP land package hosts the Arctic VMS and Bornite carbonate-replacement deposits: copper-dominant systems with zinc, lead, gold, silver and cobalt.

The move extends Washington’s recent shift from lending to ownership in critical minerals following reported equity or warrant positions in Lithium Americas and MP Materials. Critical Metals also surged over 80% following only the rumor that the Trump administration is weighing an equity stake in it.

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