U.S. Dept. of War Invests $35.6M in Trilogy Metals for Alaska Copper

Trilogy Metals Inc. (NYSE American: TMQ) (TSX: TMQ) has taken a major step forward in the development of its Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska by executing definitive agreements with the U.S. Department of War for a strategic equity investment of approximately $35.6 million. This investment, which is expected to close in September 2026, will be split evenly: about $17.8 million will be invested directly in Trilogy Metals, and the other half will be channeled through a transaction with its joint venture partner, South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY). Proceeds from the investment are earmarked for advancing exploration and development at the UKMP, which hosts some of the world's richest copper-dominant mineral deposits. Upon completion, the Department of War is anticipated to hold roughly 10% of Trilogy Metals on a non-diluted basis, subject to customary closing conditions.

Trilogy Metals holds a 50% interest in Ambler Metals LLC, which owns 100% of the UKMP. The project is located in the Ambler Mining District, renowned for its polymetallic volcanic massive sulfide (VMS) deposits containing copper, zinc, lead, gold, and silver, as well as carbonate replacement deposits with high-grade copper and cobalt. The company, in partnership with South32 and in collaboration with NANA Regional Corporation, an Alaska Native Corporation, is focused on developing the Arctic VMS and Bornite deposits within a land package spanning approximately 190,929 hectares. This investment from the U.S. government underscores the strategic importance of domestic mineral production, particularly for copper, which is critical for national security and the transition to clean energy. The full press release can be accessed at https://ibn.fm/NADNU, and for more information, visit the company's newsroom at https://ibn.fm/TMQ.

This investment is part of a broader initiative by the U.S. government to secure a reliable supply of critical minerals, reducing dependence on foreign sources. Trilogy Metals' vision is to develop the Ambler Mining District into a premier North American copper producer while respecting subsistence livelihoods, a goal that aligns with national interests. The funding will accelerate exploration and development activities, potentially paving the way for a new domestic source of copper and other metals essential for modern technologies. As the transaction progresses, stakeholders will be watching to see how this partnership between the public and private sectors unfolds, signaling a new era of collaboration for mineral security.