Trilogy Metals Shares Surge After White House Announces 10 Percent Stake

The Trump administration is investing in a Canadian miner and reviving a road project once blocked by Biden, aiming to secure domestic minerals.

President Donald Trump attends an event to sign an executive order authorizing the construction an access road to the Ambler mining district in Alaska, at the White House, in Washington, D.C., on Oct. 6, 2025. Kent Nishimura/Reuters

Shares of Trilogy Metals jumped sharply on Oct. 7 after the White House said it would buy a 10 percent stake in the Canadian mining company.

Trilogy’s U.S.-listed stock rose to $5.69 in premarket trading, giving the company a value of nearly $1 billion.

The company, based in Vancouver, works in Alaska’s Ambler mining district through a joint venture with Australia’s South32. South32 shares also gained, climbing more than 6 percent, to their highest in nearly two months.

The investment in Trilogy is part of a broader U.S. effort to secure critical minerals and reduce reliance on China. In recent years, Washington also has supported semiconductor makers and rare-earth producers seen as important for national defense.

As part of the agreement, $17.8 million will go to Trilogy in exchange for new shares, while another $17.8 million will go to South32 for stock it already owns. South32 will reinvest the proceeds into Ambler Metals, its joint venture with Trilogy.

“We see great value in the U.S. government’s intention to develop the Ambler Mining District,” said Graham Kerr, South32’s chief executive. “It is our aim to unlock the potential we see in this region, and secure critical mineral supply chains for the United States and create enduring economic activity and shared value for Alaska, particularly for communities in the surrounding the region.”

The U.S. Department of War will spend $35.6 million on the Trilogy deal, which was announced late Monday. The government also will receive warrants, or rights to buy additional stock later, that could raise its stake by another 7.5 percent.

Tony Giardini, Trilogy’s chief executive, said the deal showed how important Alaska’s mineral resources are to the United States.

“This proposed partnership with the U.S. government represents a significant milestone for Trilogy Metals and for the development of a secure, domestic supply of critical minerals for America in Alaska,” he said.

The Pentagon will gain the right to appoint an independent director to Trilogy’s board for three years. The deal also places limits on Trilogy’s ability to take on more than $1 billion in debt without federal approval until 2029.

The deal still needs regulatory approvals and the reauthorization of the Defense Production Act by Congress.

Trump Revives Alaska Road

President Donald Trump also approved on Monday the construction of a 211-mile road that would connect the Ambler mining district to the Dalton Highway.

The road had been blocked by the Biden administration in 2024, after officials warned it would harm caribou herds and salmon streams that local Native communities rely on. Trump reversed that decision, saying the project was vital for U.S. economic and security needs.

Trump told reporters in the Oval Office on Monday that the project should already have been running, generating billions of dollars for the United States and providing key energy and minerals.

The White House described the Ambler belt as “one of the largest undeveloped copper-zinc mineral belts in the world,” containing silver, gold, cobalt, and other metals needed for electric vehicles, energy systems, and weapons.

The Gates of the Arctic National Park and Preserve, where the Ambler Road project would pass through, is visible from Ambler, Alaska, on Sept. 28, 2025. AP Photo/Annika Hammerschlag

Officials said the road would create more than 2,700 construction jobs and bring Alaska more than $1 billion in taxes and royalties. They also said protections such as wildlife crossings and culverts would limit environmental damage.

Some tribal groups and environmental organizations remain opposed. They argue that opening the district would cause lasting harm to fish and wildlife that support rural subsistence communities.

The White House said the Ambler Road Project uses measures such as caribou protections and fish passage culverts to limit environmental harm.

“President Trump has consistently championed policies that balance economic development with environmental stewardship, ensuring projects like the Ambler Road benefit all Alaskans and the Nation,” the statement noted.