Shares of US-listed Canadian explorer Trilogy Metals surged as much as 205% in premarket trading on Tuesday after the White House said it would acquire a 10% stake in the company.
The move marks a significant step in the Trump administration’s strategy to secure supplies of critical minerals and reduce reliance on China.
At 9:54 a.m. London time (4:54 a.m. ET), Trilogy’s stock was still trading 183% higher, reflecting strong investor enthusiasm for the federal government’s latest intervention in the mining sector.
Federal backing for Alaska’s Ambler Road project
The $35.6 million investment in Trilogy Metals Inc was announced on Monday alongside the approval of the long-debated Ambler Road project — a 211-mile industrial corridor through the Alaskan wilderness that the Biden administration had previously blocked on environmental grounds.
The road will allow companies such as Trilogy to access the mineral-rich Ambler mining district, which holds vast deposits of copper, cobalt, gallium and germanium.
“[We are] making that investment so that we can make sure that we are securing these critical mineral supplies and that ownership . . . will benefit the American people,” said Doug Burgum, US secretary of interior.
“These are minerals that are absolutely essential to defence, to industry moving forward today. Just take copper alone, this is one of the richest copper locations in the country,” he added.
Trump calls Alaska project an “economic gold mine”
Announcing the deal in the Oval Office, President Donald Trump described the Ambler Road project as an “economic gold mine” that should have been operational “long ago.”
The administration’s decision overturns years of environmental and regulatory resistance, signaling a policy pivot toward aggressive resource development in Alaska.
Trilogy Metals, headquartered in Vancouver, British Columbia, welcomed the approval, saying it reflects “a renewed federal commitment to responsible resource development.”
The company emphasized that the Ambler mining district is home to “some of the world’s richest known copper-dominant polymetallic deposits.”
However, environmental groups and local communities have long opposed the project, warning that the road could damage fragile ecosystems that support wildlife and indigenous livelihoods.
Broader drive to reduce China dependency
The investment in Trilogy Metals follows a series of similar actions by the White House to strengthen the domestic critical minerals sector.
In recent months, the government has taken equity stakes in Lithium Americas and rare earths miner MP Materials, part of a broader effort by Western nations to counter China’s dominance in the global supply chain for essential minerals such as lithium, rare earth elements and germanium.
Trilogy’s pre-deal market capitalization was roughly C$500 million ($358 million), according to figures released before the White House announcement.
The agreement also gives the federal government the option to acquire an additional 7.5% stake in the company.
Sector-wide rally boosts lithium and rare earths stocks
The government’s increasing interest in domestic mining has triggered sharp gains across the broader critical minerals sector.
Shares of USA Rare Earth, which is developing a mine and a magnet-making facility, have nearly doubled over the past month.
The company said last month it was in talks with the US government for potential funding “through a combination of loans, grants and other opportunities,” according to board chair Michael Blitzer.
The announcement followed USA Rare Earth’s $217 million acquisition of UK-based Less Common Metals.
Similarly, Lithium Americas has seen its share price climb 184% over the past month, coinciding with the White House’s decision to take a 5% stake in the company.
The series of investments underscores Washington’s intent to build a secure, domestic supply chain for materials deemed vital to energy transition technologies, defense systems and high-end manufacturing — a policy shift that is rapidly reshaping the North American mining landscape.
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