Trilogy Metals Inc. has completed its strategic equity investment totaling approximately US$35.6 million with the U.S. Department of War, establishing the U.S. Government as an approximate 10% shareholder of the company.

The transaction spans agreements with Trilogy Metals and South32 Limited, with the full proceeds being deployed to advance exploration and development at the Upper Kobuk Mineral Projects in northwestern Alaska. The asset portfolio covers approximately 190,929 hectares and encompasses both the Arctic polymetallic deposit and the Bornite copper-cobalt deposit through Ambler Metals LLC, a 50/50 joint venture operating company equally owned by Trilogy and South32.

Ambler Metals operates under an agreement with NANA Regional Corporation, Inc., an Alaska Native Corporation, which provides a framework for exploration and development across the Ambler Mining District.

As part of the closing mechanics, South32's beneficial ownership of Trilogy common shares decreased from approximately 10.7% to 6.0%. Under the definitive agreements, the Department of War holds a ten-year option to purchase 6,161,678 common shares of Trilogy from South32 at a price of US$0.01 per share, with South32 obligated to hold those shares during the ten-year period.

In addition to the equity placement, the Department of War has committed to work in good faith to help facilitate financing required for construction of the proposed 211-mile, industrial-use-only Ambler Road in coordination with the State of Alaska and the Alaska Industrial Development and Export Authority.

The coordinated federal and state permitting schedule for the Arctic Project targets a Record of Decision in September 2028.

Read the full announcement: Trilogy Metals Closes US$35.6 Million Strategic Equity Investment by the U.S. Department of War