Department of War takes $35.6 million equity stake in Trilogy Metals to secure copper, cobalt and germanium in northwest Alaska

The Department of War’s Office of the Assistant Secretary of War for Industrial Base Policy, in partnership with the Economic Defense Unit, is making a $35.6 million equity investment in Trilogy Metals Inc. (NYSE: TMQ) through the Industrial Base Analysis and Sustainment program, aiming to establish a secure domestic supply of copper, cobalt, germanium, and other critical minerals for national defense systems and the broader U.S. Defense Industrial Base.

Under the agreement, the investment secures a 10% direct ownership stake in Trilogy Metals and 7.5% in penny warrants, for a combined U.S. government economic position of 17.5%. The funding will support exploration, engineering, and infrastructure development at the Upper Kobuk Mineral Projects in Northwest Alaska, a district-scale, under-explored land package managed by Ambler Metals LLC, a 50/50 joint venture between Trilogy Metals and South32 Limited.

“To build a robust Defense Industrial Base, we must secure the foundational materials that enable it,” said the Honorable Mike Cadenazzi, Assistant Secretary of War for Industrial Base Policy. “This partnership with Trilogy Metals is a decisive investment in America’s supply chain independence and our long-term national security.”

The transaction follows the revival and approval of the Ambler Road Project, a proposed 211-mile industrial access road from the Dalton Highway to the remote Upper Kobuk Mineral Projects district. Declared crucial for national security to facilitate the extraction of strategic minerals, the project is projected to create more than 2,730 construction jobs and 500 long-term mining jobs in Alaska, generate over $1.1 billion in state revenues, and drive downstream smelting, refining, and high-value manufacturing across Arizona, Utah, Texas, Ohio, and Pennsylvania.

“The Department is tirelessly working to secure the critical minerals needed to build and sustain America’s defense and economy,” said George K. Kollitides II, Director of the Economic Defense Unit. “This investment puts the taxpayer and our warfighters first by taking decisive action to protect our economy from manipulation, revitalize our industrial base, and create thousands of American jobs that will support our national security for decades to come.”

The Upper Kobuk Mineral Projects contain significant deposits of critical materials. The Arctic volcanogenic massive sulfide deposit is described as one of the highest-grade undeveloped copper deposits in the world, while the adjacent Bornite project hosts substantial copper, cobalt, and germanium reserves. These materials underpin electrical infrastructure, defense platforms, datacenters, and advanced electronics.