Trilogy Metals Announces Definitive Agreements for Strategic Equity Investment by U.S. Department of War
NYSE American / TSX Symbol: TMQ
Vancouver, BC — August 28, 2026 — Trilogy Metals Inc. (NYSE American: TMQ) (TSX: TMQ) today announced the execution of definitive agreements with the U.S. Department of War (DOW) for a strategic equity investment of approximately US$35.6 million aimed at advancing exploration and development of the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska.
Key Details of the Transaction:
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Investment Structure:
- DOW will invest US$17.8 million in Trilogy Metals for 8,215,570 units at US$2.17 per unit. Each unit consists of one common share and three-quarters of a 10-year warrant, exercisable under specific conditions.
- An additional US$17.8 million will be paid to South32 in exchange for 8,215,570 common shares of Trilogy Metals, along with a 10-year call option.
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Ownership Post-Transaction:
- DOW will hold approximately 10% of Trilogy Metals.
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Use of Funds:
- The funds will facilitate the exploration and development of the UKMP.
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Board Representation:
- The DOW will have the right to appoint one independent director and a non-voting board observer.
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Indebtedness Covenant:
- Trilogy Metals cannot incur third-party debt exceeding US$1 billion without DOW’s permission until January 1, 2029.
Pre-Closing Milestones Completed
- Completed a FOCI risk assessment.
- Received authorization from U.S. Congress for the investment.
Statements from Executives
Tony Giardini, CEO of Trilogy Metals, expressed that the agreements signify a crucial milestone for securing domestic critical minerals for America. George K. Kollitides II, DOW’s Director of the Economic Defense Unit, noted the investment reflects a strategy to enhance U.S. industrial strength.
About Trilogy Metals
Trilogy Metals is focused on developing the Ambler Mining District in Alaska, which hosts a rich array of mineral resources. The company aims to become a premier North American copper producer.
Forward-Looking Statements
This announcement includes forward-looking statements about the anticipated investment and operational plans, emphasizing the uncertainty surrounding project completion and regulatory requirements.
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