Trilogy Metals Inc. (NYSE American: TMQ) has completed a US$35.6 million strategic equity investment by the U.S. Department of War (DOW), making the U.S. government an approximately 10% shareholder in the company, according to a press release dated Sept. 11, 2026.

The investment was split between transactions with Trilogy Metals and South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY). All proceeds will be directed to Ambler Metals LLC, a 50/50 joint venture between Trilogy and South32, to advance exploration and development of the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska. The UKMP covers approximately 190,929 hectares and includes the Arctic polymetallic deposit and the Bornite copper-cobalt deposit.

The DOW has committed to work in good faith to help facilitate financing for the proposed 211-mile Ambler Road, an industrial-use-only road being developed in coordination with the State of Alaska and the Alaska Industrial Development and Export Authority (AIDEA).

The closing follows two federal permitting milestones for the Arctic Project: a Clean Water Act Section 404 permit application filed with the U.S. Army Corps of Engineers in April 2026, and the project's acceptance as a "Covered Project" under FAST-41 on May 15, 2026, which established an enforceable permitting timetable.

As part of the transaction, South32's stake in Trilogy was reduced from approximately 10.7% to 6.0% of issued and outstanding common shares. The DOW received an option, exercisable over 10 years, to purchase 6,161,678 common shares of Trilogy from South32 at US$0.01 per share, subject to certain conditions. South32 is obligated to hold those shares during that period.

The consideration paid by the DOW to South32 was US$17,827,787, equivalent to approximately C$24.7 million, or C$3.01 per share, based on the Bank of Canada exchange rate at closing.