 will take an equity stake in Trilogy Metals to advance exploration and development in the Ambler mining district in Alaska.){kind=link}
US Government secures stake in South32-backed critical minerals JV
The US Department of War (DOW) will take an equity stake in Trilogy Metals to advance exploration and development in the Ambler mining district in Alaska.
Under the terms, South32 has agreed to sell more than 8.2 million shares in Trilogy Metals to the DOW for about $26.9m (US$17.8m).
South32 will reinvest the estimated $26.9m into Ambler metals to support exploration and development.
South32 chief executive Graham Kerr comments on the decision.
“We see great value in the US Government’s intention to develop the Ambler mining district,” he said.
“It is our aim to unlock the potential we see in this region, and secure critical mineral supply chains for the US and create enduring economic activity and shared value for Alaska, particularly for communities in the surrounding region.”
South32’s interest in Ambler Metals remains unaffected. Following this initial share transaction reflecting DOW investment, South32 will hold 19,379,741 shares in Trilogy Metals.