Shares of small-cap Trilogy Metals soar 190% as U.S. takes 10% strategic stake

Shares of Canadian mining company Trilogy Metals have surged more than 190% in early trading today, October 7. The small-cap miner became the latest beneficiary of the Trump administration’s campaign to secure domestic critical minerals: Washington will invest $35.6 million in the company and receive a 10% equity stake. Similar U.S. government investments in the sector have already triggered rallies in MP Materials and Lithium Americas.

Trilogy shares jumped nearly 190% in premarket trading today to $6.00 per share following the announcement of the project that is hoped will "unlock Alaska's mineral potential." The U.S. will take a 10% stake in Trilogy Metals as part of a $35.6 million investment to secure critical energy and mining projects in Alaska.

The investment was unveiled during an Oval Office event with President Trump, where the administration also approved the long-delayed Ambler Road project in Alaska. The 340-kilometer industrial road will connect Alaska’s Ambler Mining District – home to major deposits of copper, cobalt, gallium, germanium, and zinc – to existing infrastructure, enabling large-scale mineral development.

“It is an economic gold mine, so to speak,” Trump was quoted by the FT as saying. “This was something that should have been long operating and making billions of dollars for our country and supplying a lot of energy and minerals and everything else that we are talking about.”

Interior Secretary Doug Burgum said the Ambler Road will be a toll road designed with environmental safeguards, including protections for wildlife and fisheries. Trump added that construction will include two bridges.

The Biden administration had blocked the project in 2024, citing concerns about its impact on caribou migration and Alaska’s ecosystems. 

The Trilogy Metals deal is part of a broader series of public-private partnerships in which Washington has taken equity stakes in domestic strategic-resource producers to reduce reliance on China, writes the FT.

Just last week, the U.S. acquired a 5% stake in Lithium Americas, developer of the Thacker Pass lithium project in Nevada. Its shares surged by a third on the news.

In July, the Department of Defense announced a $400 million investment in MP Materials to fund a rare-earth magnet manufacturing facility. MP’s stock jumped 50% in a single day and is up 147% since the deal.

The strategy is part of a wider push by Western nations to break their dependence on China for the metals, such as lithium, rare earth elements, and germanium, that are needed for a range of industries from energy to technology and defense, the FT noted.  

There were likely to be more such White House deals for mining projects, specifically those that would produce metal needed by the defense sector, such as antimony. Those materials were likely to be more of a focus than battery metals such as lithium and nickel, a former Energy Department official told the FT.   

Trilogy Metals, based in Vancouver, develops projects in Alaska’s Ambler region. The Ambler Road will enable the company and its partners to advance large deposits including Arctic and Bornite, "projects with robust economics, long mine lives, and potential to deliver strong returns for shareholders," the company said.

Before the latest rally, Trilogy shares had gained 83% year to date. According to MarketWatch data, of the four analysts covering the stock, three recommend holding it and one rates it a "buy." Their average target price stands at $3.00 per share, less than half the current premarket level.

The AI translation of this story was reviewed by a human editor.