The US Government has officially become a shareholder in Trilogy Metals (TSX:TMQ) after the Department of War (DoW) closed its US$35.6 million ($49.7 million) investment in the company’s venture in Alaska.
The funding, first announced last October, is expected to support the exploration and development of the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska.
The projects are held by Ambler Metals, a 50/50 joint venture between Trilogy and Australian miner South32 (ASX:S32).
Following the closing of the investment, the US Government now holds a 10% direct stake in Trilogy, while South32’s ownership has been diluted from 10.7% to 6%.
Trilogy and South32 are expected to split the proceeds of the US$35.6 million federal investment, with both companies committed to reinvesting all proceeds into the UKMP.
Arctic project advances
The UKMP covers around 190,929 hectares and includes the ‘high-grade’ Arctic polymetallic deposit and the Bornite carbonate replacement deposit.
Earlier this year, the Arctic Project was added to the US Government’s FAST-41 program, which is designed to improve coordination and accelerate the permitting process for major infrastructure and critical mineral projects.
Arctic is being positioned as a potential major US source of critical minerals, particularly copper and zinc. Its latest technical report outlines a 13-year mine life with average annual payable production of 149 million pounds of copper and 173 million pounds of zinc.
The proposed operation would also produce 26 million pounds of lead, 32,538 ounces of gold, and 2.8 million ounces of silver annually.
Trilogy has already submitted its Clean Water Act Section 404 permit application for the proposed mine to the US Army Corps of Engineers, an agency involved in many projects covered by FAST-41.
The company says the Section 404 permit is the only key federal permit required for the mine, with other approvals handled at the state and local levels.
Trilogy recently said it expects the federal permitting process for Arctic to conclude in late 2028.
US backs Ambler Road
Alongside the Trilogy investment, US President Donald Trump had directed federal agencies to advance permits for a proposed 340km industrial road that would provide access to mining projects in the region, including the UKMP.
The project, known as Ambler Road, was previously blocked by the Biden administration over environmental concerns.
The DoW says it is committed to working in good faith to help facilitate financing for construction of the Ambler Road in coordination with the State of Alaska and the Alaska Industrial Development and Export Authority, which is responsible for the project.
Trilogy Metals is a Canada-based metal exploration and development company holding a 50% interest in Ambler Metals.
Write to Jackson Chen at Mining.com.au
Image: Ambler Metals
