Topline
Shares of Trilogy Metals soared more than 250% as trading opened Tuesday, after the Trump administration announced it would take a 10% stake in the Canadian mining firm as part of a new partnership, granting support for mining exploration in Alaska.
The deal reverses the Biden administration’s earlier rejection of an Alaskan mining project.
AFP via Getty Images
Key Facts
Trilogy Metals’ stock rallied about 260% to around $7.50 shortly after trading opened Tuesday, setting a new record price and nearly doubling the previous all-time intraday high of $4.76 set as the company first went public in April 2012.
The White House said late Monday the U.S. would invest $35.6 million to support mining exploration in Alaska’s Ambler mining district, giving the federal government a 10% stake in the company, though the deal includes warrants to purchase an additional 7.5% equity.
The Trump administration separately issued permits to support the Ambler Road Project, a 211-mile-long industrial road that would enable access to deposits of copper, cobalt, gallium, germanium and other minerals.
Trilogy Metals celebrated the move, which it said “reflects a renewed federal commitment to responsible resource development in Alaska and highlights the Ambler Road as critical infrastructure under federal policy.”
Surprising Fact
President Donald Trump’s order to grant permits for Ambler Road reverses the Biden administration’s rejection of the project last year. The Interior Department reported in April 2024 the proposed Ambler Road project would impact at-risk wildlife populations and “critical food sources” for Native American communities, arguing a decision to reject permits for the project avoids “significant, irrevocable impacts to Tribal subsistence uses” and permafrost, which would “make it unlikely the road could be reclaimed.” In its announcement, the White House said the Biden administration’s rejection “ignored Alaska’s economic needs and national security imperatives,” claiming the Ambler Road project is “vitally important to America’s national defense and economic prosperity.”
Tangent
Shares of Canadian mining firm Lithium Americas rallied 95% last month after the White House said it would seek equity in the company. The Trump administration received 5% equity in the firm and took a 5% stake in its Thacker Pass project, which the Energy Department has said would produce enough battery-quality lithium to power about 800,000 electric vehicles. Lithium Americas’ shares have surged roughly 175% since the federal government took equity, though it has pared back some of its gains.
Key Background
Acquiring a stake in Trilogy Metals follows Interior Secretary Doug Burgum’s announcement in April that the Trump administration would seek equity in companies that mine and process critical minerals. Burgum said the moves would cut the U.S.’ dependence on imports, especially China. The Defense Department acquired a 15% stake in the rare earth miner MP Materials, and the company’s shares have nearly doubled since the deal was reached. The Trump administration has sought equity across other industries, after the U.S. took a 10% stake in the beleaguered Intel in August, marking one of the largest government interventions in more than a decade.