American Tungsten Corp. (TSXV: TUNG, OTCQB: DEMRF)
Building America’s Defense Critical Metals Supply
Amid a broader downturn in U.S. stock markets, shares of Canadian mining company Trilogy Metals (TMQ) skyrocketed 211% on Tuesday. The dramatic surge followed an announcement from the Trump administration revealing a $36.5 million investment to acquire a 10% stake in the company, coupled with the revival of the previously halted Ambler Road Project in Alaska. These moves signal an accelerated U.S. push to reduce dependence on China for critical minerals.
The gains stood in stark contrast to the broader market, where the S&P 500 and Nasdaq Composite Index fell 0.4% and 0.7%, respectively.
Under an agreement disclosed after Monday’s market close, the U.S. government will invest $36.5 million for a 10% equity interest in Trilogy Metals. The deal also includes warrants that could allow the stake to be increased to 17.5%. The Vancouver-based miner is developing the Ambler Mining District in Alaska, a region rich in strategic metals—including copper, cobalt, gallium, and germanium—deemed vital for the U.S. economy and national defense.
President Trump also signed an executive order approving the construction of an industrial road to access the Ambler mining district. This decision directly reverses the Biden administration’s 2024 move to block the 211-mile road project over concerns about its impact on caribou and fish habitats. The move clears a significant hurdle to unlocking Alaska’s mineral potential.
A White House statement explicitly described the actions as part of a strategy to “secure the U.S. supply of critical metals.” It highlighted that the U.S. lags significantly behind China in accessing new metal resources, a disparity the Trump administration has prioritized addressing. Beyond Trilogy, Washington has recently taken similar direct investment actions in other sectors related to national security, such as semiconductors and critical minerals.
Boosted by the news, shares of South32, Trilogy’s Australian joint venture partner in the Ambler project, climbed as much as 6.1% on Tuesday, hitting their highest level since August 14. An analyst team from RBC Capital Markets noted that the federal endorsement and executive order substantially reduce the policy uncertainty surrounding road access for the Ambler project. While the timing of final permits and potential legal challenges remain variables, a key constraint has been overcome.
Market analysts concurrently issued warnings, noting that while government backing presents a major opportunity for Trilogy, this political-dependent business model is a “double-edged sword.” Even during a Trump administration, policy directions can shift significantly, causing the stock to become overly reliant on a single political risk factor.
