Trilogy Metals Secures $17.8M US Gov't Investment for Alaska Project
Trilogy Metals, in partnership with the US Government, has reached a significant milestone. The company, along with Ambler Metals and South32, has signed a binding letter of intent for an investment in the Upper Kobuk Mineral Projects (UKMP) in Alaska. The deal, worth approximately $17.8 million, will see the US Department of War (DoW) acquire a 10% direct stake in Trilogy Metals.
The transaction involves the DoW purchasing 8,215,570 units, priced at $2.17 each, which include one common share and three-quarters of a ten-year warrant. In addition, the DoW will pay South32 $17.8 million for 8,215,570 common shares of Trilogy Metals and a ten-year call option to buy an additional 6,161,678 shares at $0.01 per share. The funds will be used for the exploration and development of the UKMP and to reinvest in Ambler Metals.
Under the agreement, the DoW will appoint an independent third-party director to Trilogy Metals' board for three years. The partnership also envisions stakeholders negotiating a framework agreement to unlock the development of mineral projects in the UKMP.
Following the transaction, the DoW will hold around 10% of Trilogy Metals. Trilogy's president and CEO, Tony Giardini, hailed the partnership as a significant milestone, representing a step towards securing a domestic supply of critical minerals for America in Alaska.
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