US stock market: US-listed Trilogy Metals witnessed a massive rally in pre-market trading on Tuesday, October 7, after the White House said it would acquire a 10% stake in the Vancouver-based miner.
In a press release on Monday, the said that the US government is announcing a partnership with Trilogy Metals, investing $35.6 million to support mining exploration in Alaska’s Ambler Mining District.
This investment makes the US government a 10% shareholder in Trilogy Metals and includes warrants to purchase an additional 7.5% of the company, the release added.
The move comes as part of as part of the Trump administration’s push to secure domestic supplies of critical minerals.
Trilogy Metals share price trend
Following this update, the Canadian mining company’s stock jumped 206% to hit $6.39 in trade over its last close of $2.08. As of 6.30 AM EDT, Trilogy Metals share price was 170.17% higher at $5.67 in pre-market trade.
As per a Bloomberg report, at current premarket prices, Trilogy Metals was within reach of a $1 billion market value.
In another announcement on Monday, US President said the White House is reversing a Biden-era decision to reject Ambler Road project — a proposed 211-mile industrial road from the Dalton Highway to Alaska’s remote Ambler Mining District (District) that would enable access to large deposits of copper, cobalt, gallium, germanium, and more.
“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,” Trump said during an event in the Oval Office as per a Bloomberg report.
Trilogy Metals has mining claims in remote areas of Alaska, including a joint venture with South32 Ltd.
The US government has already taken a stake in Intel, MP Materials and Lithium Americas. Earlier this week, Reuters reported the US government was considering taking a stake in Critical Metals.
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