According to The Globe and Mail, the U.S. government agreed to purchase 16.4 million Trilogy shares at US$2.17 apiece

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While technology stocks such as Nvidia have dominated headlines in recent months, the gold and mining sector has quietly led the market over the past six months as investors sought the stability of tangible assets. Reflecting this broader trend, the U.S. government has taken a 10% equity stake in Trilogy Metals Inc. (TMQ:NYSE.MKT; TMQ:TSX) as part of a US$35.6 million initiative to strengthen domestic access to critical minerals.

According to The Globe and Mail, the U.S. government agreed to purchase 16.4 million Trilogy shares at US$2.17 apiece, providing a 10% ownership interest and the right to acquire additional shares over a 10-year period at an exercise price of one cent per share. The investment coincided with a presidential decision to approve permits for the Ambler Access Project, a 340-kilometer industrial-use road in Alaska that would connect the remote Upper Kobuk Mineral Projects (UKMP) to the Dalton Highway.

The UKMP is held through Ambler Metals LLC, a 50/50 joint venture between Trilogy Metals and South32 Ltd. The project contains copper, zinc, lead, gold, and silver deposits and has been identified as a key component of the United States' critical minerals strategy. "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," said Trilogy President and CEO Tony Giardini in a company news release. "The Department of War's interest underscores the strategic importance of the Upper Kobuk mineral projects in supporting U.S. energy, technology and national security priorities."

The announcement followed President Donald Trump's decision to reverse a 2024 ruling by the previous administration that had blocked construction of the Ambler Road on environmental grounds. The reinstated authorization directs federal agencies to reissue the necessary approvals for the project while maintaining protections for wildlife, fish habitats, and nearby communities. The Ambler Road, held by the Alaska Industrial Development and Export Authority, is designated for industrial use only to enable access to Alaska's critical mineral deposits.

Under the agreement, the U.S. Department of War will invest US$17.8 million in new Trilogy units — each      comprising one common share and three-fourths of a 10-year warrant—and another US$17.8 million to purchase shares from South32. The arrangement also gives the Department the right to appoint an independent director to Trilogy's board for a three-year term. Trilogy and South32 have committed to use the proceeds to advance exploration and development across the Upper Kobuk district, with any further share acquisitions contingent on the completion of the Ambler Road, now permitted for construction.

Market Reaction and Industry Context

Shares of Trilogy Metals surged sharply following news that the U.S. government would become a 10% shareholder in the company. According to CNBC on October 7, Trilogy's U.S.-listed shares rose more than 200% on Tuesday after the announcement of a US$35.6 million investment by the Trump administration to secure critical mineral resources in Alaska. The agreement, which includes warrants to purchase additional shares, was part of a broader White House initiative to strengthen domestic supply chains for key materials such as copper, cobalt, zinc, and lead.

The move was accompanied by President Donald Trump's approval of permits for the Ambler Access Project, a 211-mile industrial-use road intended to provide access to Alaska's Upper Kobuk Mineral Projects. The company described the Ambler mining district as "home to some of the world's richest known copper-dominant polymetallic deposits" and said the presidential decision "reflects a renewed federal commitment to responsible resource development in Alaska." The White House indicated that the policy shift would support domestic energy, defense, and manufacturing supply chains, which have been heavily reliant on foreign sources, particularly China.

MarketWatch reported that Trilogy's shares tripled in early trading, jumping from US$2.09 to US$7.37 on Tuesday morning. The publication noted that the U.S. government's investment includes warrants to buy an additional 7.5% of the company, while Trilogy's joint venture partner South32 Ltd. sold US$17.8 million worth of its shares to the government and issued a call option for another 6.2 million shares. The deal followed earlier federal investments in North American resource developers, including MP Materials and Lithium Americas, reflecting Washington's increasing focus on securing critical minerals vital to national and economic security.

Copper Reaches New Highs Amid Rising Global Demand

As reported in an October 4 post from The Economic Times, copper prices climbed to record levels across major global exchanges, supported by tightening supply, strong demand from green energy sectors, and ongoing geopolitical uncertainty. The report noted that prices on the London Metal Exchange approached US$10,000 per tonne, while the Shanghai Futures Exchange recorded gains of more than 8% for the year. Analysts attributed the rally to "a perfect storm of supply constraints and booming demand," emphasizing that electric vehicles use up to four times more copper than conventional cars and that renewable energy infrastructure remains heavily copper-dependent. The International Copper Study Group reported that global consumption continued to outpace supply as older mines faced declining ore grades and new projects struggled to come online. Inventories at the London Metal Exchange were said to have dropped by more than 66% over the past year.

The Economic Times also highlighted the influence of monetary policy and foreign exchange trends on copper's momentum. A more accommodative U.S. Federal Reserve and a weaker dollar made the metal less expensive for international buyers, further boosting demand. Meanwhile, geopolitical tensions and newly imposed trade tariffs added volatility to the market, as supply chain realignments and rising fuel costs placed pressure on producers.

Mining executive Robert Friedland commented on the trend in a post on X, recalling that when copper traded near US$8,500 per tonne in late 2023, he cautioned that "nearly any disruption could result in a sharp upward move in prices." He said the combination of grid expansion, national security priorities, and challenges in developing new mines had since pushed the market to sustain levels above US$10,000 per tonne.

Advancing Alaska's Critical Minerals Corridor

Trilogy Metals' October 2025 investor presentation outlined several near-term milestones, including the commencement of permitting for the Arctic Project and Department of Defense funding to support the Bornite Project's cobalt supply chain. These initiatives align with federal efforts to enhance domestic production of copper, zinc, cobalt, and germanium — minerals essential to renewable energy, defense technologies, and data infrastructure.

The Arctic Project, one of the highest-grade copper deposits globally with an average grade of approximately 5% copper equivalent, carries a pre-tax net present value of US$1.5 billion and a 25.8% internal rate of return based on feasibility study results. The Bornite Project adds 6.5 billion pounds of inferred copper resources and cobalt credits, which could extend the Upper Kobuk district's potential mine life beyond 30 years.

With established partnerships that include South32 and the Alaska Industrial Development and Export Authority, Trilogy Metals holds a central position in the U.S. government's strategy to secure domestic critical mineral supply chains. Located in a stable jurisdiction with clear permitting frameworks, the company's Alaska-based assets reflect a renewed federal emphasis on resource independence and economic resilience through responsible mineral development.

Ownership and Share Structure

According to Refinitiv as of October 8, 8.32% of Trilogy Metals is held by management and insiders. Of them, Tony Giardini holds the most with 4.39%, followed by Elanie Sanders at 1.92%, and Richard Gosse with 1.20%.

Strategic entity, South32 International Investment Holdings, holds 11.32%. Institutions sit at 39.71% with The Electrum Group LLC with the most at 19.74%. The rest is retail.

Trilogy currently has 164.31 million outstanding shares, a market capitalization of CA$1.66 billion, and a 52-week range of CA$0.47 to $7.98.