Trilogy Metals soars on US government’s 10% stake announcement
Shares in Trilogy Metals, a Canadian minerals exploration company, have soared as much as 200% in early trading today after the US government announced it has taken a 10% stake in the company worth $35.6 million, along with warrants to build that investment by another 7.5% down the line.
The Trump administration’s position in the company, which had five full-time employees as of November last year, reflects growing government interest in reducing America’s dependence on China for critical mineral supplies, given Trilogy Metals’ mining claims in Alaska.
In a section of the announcement subtitled “UNLOCKING ACCESS TO AMERICA’S CRITICAL MINERALS,” the White House detailed how the investment and decision to green-light the Ambler Road Project, which will open up road access to the Ambler Mining District, overturns the Biden government’s move to block the same project last year. The area reportedly has “one of the largest undeveloped copper-zinc mineral belts in the world and contains extensive deposits of copper, silver, gold, lead, cobalt, and other strategic metals.”
Similar Washington deals with mining companies like MP Materials and Lithium Americas sent those companies’ shares soaring, too. Critical Metals, meanwhile, which jumped yesterday on reports around talks of a government stake in the business, has slumped 5% in premarket trading today.
