Department of War invests $35.6 million in Trilogy Metals

The U.S. Department of War is set to complete a $35.6 million strategic equity investment in Trilogy Metals to advance the development of critical mineral resources in northwestern Alaska. The investment, facilitated through the Industrial Base Analysis and Sustainment program, aims to secure domestic supplies of copper, cobalt, germanium, zinc, lead, gold, silver, and other materials essential for national defense, electrical infrastructure, and advanced electronics.

Through the deal, the U.S. government will hold a 10% direct ownership stake in Trilogy Metals, with warrants providing an additional 7.5% economic position. The funds will be directed toward exploration, engineering, and infrastructure development at the Upper Kobuk Mineral Projects, which are operated via Ambler Metals, a 50/50 joint venture between Trilogy Metals and South32. Both companies have committed to reinvesting the proceeds into Ambler Metals.

The project follows the approval of the Ambler Road Project, a 211-mile industrial access road. This infrastructure is expected to create over 2,730 construction jobs and 500 long-term mining positions in Alaska, while potentially generating more than $1.1 billion in state revenue. The mineral district includes the Arctic volcanogenic massive sulfide deposit, described as one of the world’s highest-grade undeveloped copper deposits.