Blue Moon Announces Sale of Yava Project

Rhea-AI Summary

Blue Moon Metals Inc. (TSXV: MOON; OTCQB: BMOOF) has announced the sale of its Yava project in Nunavut to Honey Badger Silver Inc. (TSXV: TUF). The transaction involves Blue Moon receiving 4,250,000 common shares of Honey Badger, valued at approximately $340,000 (based on $0.08 per share). This represents about 6.5% of Honey Badger's total issued and outstanding shares.

The consideration is subject to a four-month hold period, and Blue Moon has agreed to a twelve-month lock-up period. CEO Patrick McGrath stated that the Yava project offers an exciting silver exploration opportunity, and Blue Moon will continue to participate in its future through its ownership in Honey Badger. The company plans to focus on developing its Blue Moon deposit in the United States and is evaluating next steps, including the possibility of commencing a Preliminary Economic Assessment.

Positive

• Sale of non-core Yava project for approximately $340,000 in Honey Badger shares
• Acquisition of 6.5% ownership in Honey Badger Silver Inc.
• Potential for future value through Honey Badger's silver exploration projects
• Increased focus on developing the core Blue Moon deposit in the United States
• Consideration of commencing a Preliminary Economic Assessment for the Blue Moon deposit

Negative

• Consideration received in shares, not cash, subject to market volatility
• Four-month hold period and twelve-month lock-up period limiting immediate liquidity

News Market Reaction

+1.82%

1 alert

+1.82% News Effect

On the day this news was published, BMOOF gained 1.82%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

VANCOUVER, British Columbia, Oct. 02, 2024 (GLOBE NEWSWIRE) -- Blue Moon Metals Inc. (TSXV: MOON; OTCQB: BMOOF) (the “Company”) is pleased to announce that it has agreed to sell its Yava project located in Nunavut to Honey Badger Silver Inc. (TSXV: TUF). Pursuant to the definitive agreement and subject to customary closing conditions, the Company will receive 4,250,000 common shares of Honey Badger with an implied value of approximately $340,000 (being $0.08 per share reflecting a five-day moving average) (the “Transaction”). This consideration will represent approximately 6.5% of the total issued and outstanding shares of Honey Badger. Honey Badger is a silver focused entity with a significant and growing portfolio of high-quality silver projects. The consideration will be subject to the customary four-month hold period and the Company has agreed to a twelve-month lock-up period.

Patrick McGrath, the CEO of the ‎Company, stated “The Yava project offers an exciting silver exploration opportunity and Blue Moon will continue to participate in its future through its material ownership in Honey Badger. The Yava project is considered non-core for the Company, so we are happy to monetize the asset and continue to focus on developing our Blue Moon deposit in the United States. We are currently evaluating the next steps for Blue Moon including the commencing of a Preliminary Economic Assessment.”

About Blue Moon Metals

Blue Moon Metals is advancing its Blue Moon polymetallic deposit which contains zinc, gold, silver and copper. The property is well located with existing local infrastructure including paved highways three miles from site; a hydroelectric power generation facility a few miles from the site, a three-hour drive to the Oakland port and a four-hour drive to the service centre of Reno. Zinc is currently on the USGS list of metals critical to the US economy and national security. More information is available on the company’s website (www.bluemoonmetals.com).

For more information, please contact:

Patrick McGrath, CEO
1-832-499-6009
pmcgrath@bluemoonmining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur such as completion of the Transaction. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company cannot assure that actual results will be consistent with these forward-looking statements. They are made as of the date hereof and are subject to change and the Company assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the resource industry.

FAQ

What is the value of the Yava project sale for Blue Moon Metals (BMOOF)?

Blue Moon Metals (BMOOF) is selling the Yava project for approximately $340,000 in Honey Badger Silver Inc. shares, representing about 6.5% ownership in Honey Badger.

How many shares of Honey Badger will Blue Moon Metals (BMOOF) receive for the Yava project?

Blue Moon Metals (BMOOF) will receive 4,250,000 common shares of Honey Badger Silver Inc. for the Yava project sale.

What are Blue Moon Metals' (BMOOF) plans after selling the Yava project?

After selling the Yava project, Blue Moon Metals (BMOOF) plans to focus on developing its Blue Moon deposit in the United States and is considering commencing a Preliminary Economic Assessment.

Are there any restrictions on the shares Blue Moon Metals (BMOOF) receives from Honey Badger?

Yes, the shares Blue Moon Metals (BMOOF) receives are subject to a four-month hold period, and the company has agreed to a twelve-month lock-up period.