Trilogy Metals Inc. (NYSE American: TMQ) (TSX: TMQ) joins Lithium Americas Stock Run with news of Strategic Investment by US Federal Government
Investorideas.com (www.investorideas.com Newswire) a top 100 rated investment site for retail investors following mining stocks issues a trading and news alert for Trilogy Metals Inc. (NYSE American: TMQ) (TSX: TMQ).
The stock joins (TSX: LAC) (NYSE: LAC) and the recent significant run it had in the market following its
GM/DOE news.
https://ca.finance.yahoo.com/news/lithium-americas-reaches-agreement-gm-040000914.html
Trilogy just announced that the Company, South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) ("South32") and Ambler Metals LLC ("Ambler Metals") have entered into a binding letter of intent with the U.S. Department of War ("DOW"), led by the Office of the Undersecretary of Defense for Acquisitions and Sustainment ("OUSD (A&S)") and the Office of Strategic Capital ("OSC"), for an investment to advance exploration and development of the Company's Upper Kobuk Mineral Projects ("UKMP"). The UKMP are held by Ambler Metals – the Company's 50/50 joint venture with South32.
The DOW to invest approximately $35.6 million for the development of critical mineral resources at the UKMP in transactions with Trilogy Metals and South32.
The DOW will hold approximately 10% of Trilogy Metals.
The DOW intends to invest approximately $17.8 million in Trilogy Metals in exchange for 8,215,570 units at a price of $2.17 per unit, with each unit comprising of one common share of Trilogy Metals and 3/4 of a 10-year warrant. Each full warrant would be exercisable following completion of construction of the Ambler Access Project (or "Ambler Road") at an exercise price of $0.01 to acquire one common share of Trilogy.
The DOW intends to pay approximately $17.8 million to South32 in exchange for 8,215,570 common shares of Trilogy Metals that South32 currently holds and a 10-year call option to acquire an additional 6,161,678 shares of Trilogy Metals from South32 at a price of $0.01 per share, exercisable following completion of construction of the Ambler Road, the entire proceeds of which, will be reinvested in Ambler Metals.
Trilogy Metals and South32 commit to use the funds to advance the exploration and development of the UKMP. DOW shall have the right to appoint one independent third-party director to the board of directors of Trilogy Metals for a period of three years. From the date hereof until January 1, 2029, Trilogy Metals agrees to not incur obligations with respect to third-party indebtedness for borrowed money in excess of $1 billion in the aggregate without the prior written approval of DOW.
Recent news:
https://ca.finance.yahoo.com/news/trilogy-metals-announces-strategic-investment-210300147.html
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