South32 welcomes US Govt to Ambler exploration play

SOUTH32 welcomed the investment of the US government in the Ambler mining district in which the Sydney- and Johannesburg-listed miner has a joint venture.The White House announced a $35.6m investment in Canada’s Trilogy Metals, making the US government a 10% shareholder in one of the region’s prospective developers. The investment includes warrants to purchase an additional 7.5%. US-listed shares of Trilogy more than doubled in after-hours trading to $4.72, said Reuters.South32 sold about 8.2 million shares for $17.8m and a 10 year call option in Trilogy Metals to the US Department of War’s and Office of Strategic Capital. Trilogy Metals is South32’s partner in the Ambler Metals JV, an early stage exploration company in northwestern Alaska known for deposits of copper, zinc and silver.South32 said it would reinvest the proceeds from the share sale in Ambler Metals in which its stake was unchanged by Tuesday’s transaction.“We see great value in the US Government’s intention to develop the Ambler Mining District,” said Graham Kerr, CEO of South32. “It is our aim to unlock the potential we see in this region and secure critical mineral supply chains in the US,” he said. Shares in South32 gained just over four percent on the Australian Securities Exchange.Kaleb Froehlich, MD of Ambler Metals said the partnership represents strong confidence in the district. “This partnership represents a strong vote of confidence in the Ambler Mining District and is a major step forward for domestic mineral development that’s fundamental to America’s security and economy,” he said.In addition to the investment in Trilogy US President Donald Trump also signed an executive order directing his administration to authorise construction of an access road to Alaska’s Ambler mining district, reversing his predecessor’s decision and opening the way for domestic copper and mineral production.The order overturns the Biden administration’s 2024 rejection of the 211-mile road project, which the Interior Department had blocked citing threats to caribou and fish populations that dozens of native communities depend upon for subsistence, said Reuters.Trump said the project should have been operational long ago. “This is something that should have been long operating and making billions of dollars for our country and supplying a lot of energy and minerals,” he said during the Oval Office signing ceremony.The Alaska state agency that originally proposed the road had appealed the Biden decision.Environmental organisation Sierra Club opposed the development, warning it would damage pristine landscapes supporting tribal communities and wildlife, said Reuters. Athan Manuel, director of the group’s lands protection programme, said communities along the proposed route have consistently opposed the project. “This order ignores those voices in favour of corporate polluters,” he added.The post South32 welcomes US Govt to Ambler exploration play appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com