Trilogy Metals (TMQ) experienced a significant drop in its stock price, plummeting 5.63% in a 24-hour period during Thursday's trading session. This decline comes despite recent news of the U.S. government taking a 10% stake in the company, which initially caused the stock to climb.

Earlier this month, on October 6, Trilogy Metals disclosed a deal that gives the U.S. government a 10% stake in the company. The investment is part of Washington's efforts to increase its access to critical minerals outside of China, particularly in potentially attractive projects where private investors and banks have been reluctant to invest. Trilogy Metals holds interests in copper mining projects in Alaska, making it a strategic investment for the U.S. government's critical minerals initiative.

Despite the initial positive reaction to the U.S. government's investment, Trilogy Metals' stock has come under pressure in recent days. This downturn could be attributed to profit-taking following the initial surge or a market reassessment of the deal's long-term implications. Additionally, while not explicitly mentioned in the news, general market conditions or sector-specific factors could also be contributing to the stock's decline. Investors may be closely watching how this government stake will impact Trilogy Metals' operations and future prospects in the critical minerals sector.