Blue Moon, The Elmet Group, and EQ Resources Announce a US$150-$175 Million Investment into the Springer Tungsten Complex, Nevada, to Strengthen the U.S. Tungsten Supply Chain

Blue Moon, Elmet and EQ outline a funded JV and offtake structure to restart Springer and build a 4,000 tpa APT plant in Nevada.

Rhea-AI Summary

Blue Moon Metals (BMM) and The Elmet Group (ELMT) agreed binding terms for a US$150–175 million investment into the Springer Tungsten Complex in Nevada.

The package centers on a joint venture APT plant where, after a US$75 million capital injection from Elmet, ownership is expected to be TEG 70%, Blue Moon 20% and EQ Resources (EQR) 10%, with TEG as operator. Blue Moon retains full ownership and operation of the Springer mine and mill. Elmet plans a US$50 million tungsten prepayment facility to Blue Moon in two US$25 million tranches, repaid via a 25% credit on Springer concentrate sales, plus a US$25 million equity subscription into Blue Moon at C$10.00 per unit, a 31.8% premium to the 11 September close.

The APT plant’s Phase 1 is targeted at 4,000 tons per year capacity, with structured offtake allocations between Blue Moon and EQ. Completion remains subject to due diligence, regulatory and exchange approvals, and definitive agreements.

Positive

• Total Elmet commitment about US$150 million to the Springer Project, plus US$25 million standby
• US$50 million tungsten prepayment facility to Blue Moon, repaid via 25% concentrate credits
• US$25 million Blue Moon equity subscription at C$10.00 per unit, a 31.8% share price premium
• US$75 million capital injection by Elmet into the APT plant JV; post-deal interests TEG 70%, Blue Moon 20%, EQ 10%
• Phase 1 APT plant targeted 4,000 tons per year capacity, with further expansions funded pro-rata by partners
• Eight-year EQ offtake for 4,000 tonnes of contained WO₃, giving long-term feed commitments to the JV plant

Negative

• Completion of the Transactions is conditional on due diligence, regulatory and TSXV approvals, and definitive agreements
• Blue Moon will own only 20% of the APT JV Entity despite contributing the existing plant and site infrastructure
• Blue Moon faces equity dilution from issuing 3,500,000 new units and associated warrants to Elmet
• Blue Moon must meet minimum delivery requirements to the APT plant, with potential cancellation of its offtake if uncured
• The second US$25 million prepayment tranche depends on meeting construction and readiness milestones, adding execution risk

News Explained

The proposed equity financing could dilute existing holders through 3.5 million new shares plus attached warrants, but it is not yet complete.

The parties signed a binding letter agreement dated September 11, 2026, but the transactions remain subject to due diligence, approvals and definitive agreements; if the equity subscription closes, Blue Moon would issue 3,500,000 new common shares through the units.

Each unit contains one common share and one warrant for another common share, so completion would give TEG both issued shares and the ability to acquire additional shares.

Additional shares increase the total share count and reduce an existing holder’s percentage ownership absent offsetting changes.

TEG would also receive a Blue Moon board seat upon completion of the equity financing and customary pro-rata participation rights in future Blue Moon financings.

Argus 15 min delay

+44.53% vs previous close $23.40 last price 1382.2x rel. volume Open Argus

Details

Market reaction after Springer tungsten partnership: ELMT +44.53%

+15.2% Peak in 1 hr 45 min

$18.32 $23.73 Day Range

$712.75M Market Cap

Following this news, ELMT has gained 44.53%, reflecting a significant positive market reaction. Argus tracked a peak move of +15.2% during the session. Our momentum scanner has triggered 66 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $23.40. Trading volume is exceptionally heavy at 1382.2x the average, suggesting very strong buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

At publication, ELMT was up 1.7% on pre-headline market data; the transaction extended the company's...

Analysis

At publication, ELMT was up 1.7% on pre-headline market data; the transaction extended the company's disclosed tungsten strategy, following its September 8 manufacturing-asset acquisition and June 25 EQ Resources investment.

Key Figures

Total TEG investment: US$150 million Standby funding: US$25 million Tungsten prepayment facility: US$50 million +5 more

Total TEG investment

US$150 million

Contemplated investment into Blue Moon activities and the Springer JV

Standby funding

US$25 million

Additional standby requirements for APT plant restart

Tungsten prepayment facility

US$50 million

TEG facility for Blue Moon and its U.S. affiliates

Blue Moon equity subscription

US$25 million

3,500,000 units priced at C$10.00 per Unit

Equity subscription premium

31.8%

Premium to Blue Moon's September 11 closing price

JV investment

US$75 million

TEG capital injection into the APT plant

JV ownership

TEG 70%, Blue Moon 20%, EQ 10%

Ownership interests after investment

EQ offtake

4,000 tonnes of WO3

Contained in EQ concentrate over an eight-year period

Historical Context

2 past events · Latest: Sep 08

2 events

1. Sep 08

   Tungsten manufacturing acquisition

   24h Move

   +0.9%

   Elmet agreed to acquire German tungsten and molybdenum manufacturing operations.

2. Jun 25

   Tungsten supply collaboration

   24h Move

   +1.5%

   Elmet increased its EQ Resources stake and expanded its tungsten offtake collaboration.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ammonium paratungstate, ni 43-101, vwap, offtake

4 terms

ammonium paratungstate technical

"an Ammonium Paratungstate ("APT") plant capable of potentially producing"

Ammonium paratungstate (APT) is a dense, white powder that serves as the concentrated chemical feedstock used to produce tungsten metal and tungsten-based products. Think of it as a syrup concentrate that manufacturers refine into final goods like heavy-duty metal parts, lightbulb filaments, and specialty coatings. Investors watch APT because its production volumes, quality and price act as an early signal of tungsten supply, manufacturing costs and margin pressure across mining, industrial and defense-related companies.

ni 43-101 regulatory

"reported in accordance with NI 43-101 standards"

A Canadian regulatory standard that sets the rules for how mining and exploration companies must report mineral resources and reserves, requiring technical reports prepared or signed off by an independent, certified expert. It matters to investors because it creates a consistent, transparent “inspection report” for mining projects, making it easier to compare prospects, judge the reliability of claims, and assess geological and financial risk before investing.

vwap financial

"the five (5)-day volume-weighted average price (the "VWAP")"

VWAP, or Volume-Weighted Average Price, is a way to find the average price of a stock throughout the trading day, giving more importance to times when more shares are traded. It helps traders see the typical price and decide whether a stock is expensive or cheap compared to its average, similar to finding the average speed during a trip by giving more weight to times when you traveled faster or slower.

offtake financial

"a supply agreement for EQ and Blue Moon tungsten concentrate offtakes"

An offtake is a contract where a buyer commits in advance to purchase a company’s future output—such as raw materials, energy or finished goods—often at agreed volumes and prices. For investors, an offtake provides predictable revenue and lowers the risk that production will go unsold, similar to a long-term subscription or pre-order that helps a factory or mine secure funding and plan operations with greater confidence.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

TORONTO, Sept. 14, 2026 /PRNewswire/ -- Blue Moon Metals Inc. ("Blue Moon" or the "Company") (TSXV: MOON) (NASDAQ: BMM), along with The Elmet Group Co. ("Elmet" or "TEG") (NASDAQ: ELMT), and EQ Resources Limited ("EQ") (ASX: EQR) (together the "Parties" or "Party"), are pleased to announce signing a binding letter agreement dated September 11, 2026 regarding a series of strategic transactions intended to unlock the value of Blue Moon's Springer Tungsten Complex ("Springer"), located in Imlay, Nevada.

Springer historically was one of the largest tungsten mines in the United States, and consisting of open pit and underground mines, a 1,200 Tpd mill and an Ammonium Paratungstate ("APT") plant capable of potentially producing up to 4,000 Tpa (collectively, the "Springer Project"). The facility is permitted for construction and received approval of its bonding requirements from the State of Nevada to start construction and redevelopment of the mine on August 20, 2026.

The facility is largely on fee lands, and contains a historical mineral resource from General Electric and Utah International Inc. of 10.7 MT of 0.45% WO₃ based on historical data and reports prepared by the prior operators in 1984, as well as access to water, electricity, natural gas and tailings capacity and is a few miles away from the Union Pacific rail-line and the I-80 highway. The Company has not completed the work necessary to have the historical mineral resource estimate verified by a QP. The Company is not treating the estimate as a current NI 43-101 defined resource and the historical resource estimate should not be relied upon. Further drilling this year and next year will be used to update the resource estimate, which will subsequently be reported in accordance with NI 43-101 standards. On September 3, 2026, Blue Moon acquired additional water rights and land to access the Union Pacific rail-line, with the potential to install a load-on/out facility.

Blue Moon has previously indicated the Springer mine and mill are expected to be back in production in Q4-2027, and the APT plant is expected to be restarted 2H-2028, which will be potentially the first material tungsten concentrate production in North America and a significant new source of APT for the U.S. market.

The contemplated transactions include: i) the formation of a joint venture entity (the "JV Entity") among the Parties to own and operate the APT Plant (the mine and mill will remain owned by Blue Moon), (ii) an equity investment by TEG into Blue Moon, (iii) TEG's receipt of board representation in both Blue Moon and the Springer Project JV Entity; (iv) a supply agreement for EQ and Blue Moon tungsten concentrate offtakes to the APT plant at market pricing, (v) a tungsten prepayment facility provided by TEG to Blue Moon to be repaid through a credit against sales of concentrate from Springer, and (vi) a site sharing agreement between Blue Moon and the JV Entity, covering the land, buildings, utilities, water, and services arrangements between the JV Entity and Blue Moon (collectively, the "Transactions").

The Transactions contemplate a total investment from TEG of approximately US$150 million, split between, (i) investments in Blue Moon's activities at the Springer Site (the "Blue Moon Investment"); and (ii) a contribution to the JV Entity (the "JV Investment" and, together with the Blue Moon Investment, the "Project Investment"). An additional US$25 million has been set aside by TEG and EQ for additional standby requirements if needed to place the APT plant back in production.  All Parties involved are arms-length.

Collectively, these Transactions are all part of the broader TEG Landmark Initiative with the U.S. Department of War (the "DoW") to Secure America's Tungsten Supply Chain. The DoW has been supportive in advancing the Transactions, including completing a NEPA review of Springer.

Earlier today, the DoW announced a US$450 million investment into TEG, of which US$150 million has been designated as use of proceeds for the Transactions. This Transaction is intended to solidify the U.S. tungsten supply chain for primary supply to aerospace and defense contractors plus support for critical U.S. industrial segments such as Semiconductor, Energy, Medical and Industrial.

In relation to this Transaction, The Elmet Group has established Elmet Refining & Trading (ERT) as a new division.

Christian Kargl-Simard, CEO and Director of Blue Moon states, "This is a great day for the U.S. with regards to providing a major boost to the U.S. tungsten supply chain. We are very appreciative of the commitment of all stakeholders to advance Springer as a team. This Transaction, along with our previously announced acquisition of 33 western U.S. based tungsten and antimony projects, and our Apex germanium and gallium mine in Utah, should position Blue Moon as an important name in the domestic industrial metal supply chain."

Peter V. Anania, Chairman and CEO of The Elmet Group states, "We believe this investment represents a significant step forward in rebuilding a secure, integrated U.S. tungsten supply chain - from domestic mineral production and processing through the advanced manufacturing capabilities required by critical U.S. industries and defense applications. By working in collaboration with Blue Moon and EQ at Springer, we hope to bring together critical resources, processing expertise, and downstream manufacturing capabilities to create a more resilient source of tungsten materials for the United States and its allies. The Elmet Group is proud to help establish and advance the infrastructure necessary to reduce our reliance on foreign sources of tungsten while strengthening American manufacturing and national security."

Craig Bradshaw, Managing Director of EQ Resources states, "This transaction is transformational for EQR. It delivers a 10% interest in what will be a significant new APT facility in North America, an eight-year offtake agreement for 4,000 tonnes of contained WO₃ from our mines, and a leading role in the engineering and project delivery of the APT plant, all while validating the ore-sorting technology we have developed across our operations. Partnering with Blue Moon and The Elmet Group, with the sponsorship of the U.S. Department of War, cements EQR's position as a important supplier of this critical mineral and opens a strategic new market for our Australian and Spanish production."

Project Investment Details

a) Tungsten Prepayment Facility (US$50 million). As part of the Blue Moon Investment, TEG shall provide Blue Moon and its U.S. affiliates (the "BM Group") with a prepayment facility in the aggregate principal amount of US$50 million (the "Tungsten Prepayment Facility"), to be funded in two tranches as follows:

i. Tranche 1: The first tranche, in the amount of US$25 million ("Tranche 1"), shall be funded at the closing of the Tungsten Prepayment Facility, which is expected within forty-five (45) days of today.

ii. Tranche 2: The second tranche, in the amount of US$25 million ("Tranche 2"), shall be funded upon completion of agreed milestones to be set forth in the definitive agreements, aligned with Blue Moon's readiness covenants relating to the mine, mill/concentrate plant, and flotation circuit, and, if test work is favorable, ore sorting progress. Tranche 2 shall be funded only upon satisfactory completion of the construction milestones applicable to Tranche 1, as mutually determined by the Parties acting reasonably.

Repayment: The Tungsten Prepayment Facility shall be repaid through a twenty-five percent (25%) credit against sales of Springer Concentrate.

b) TEG Warrants. In connection with the Tungsten Prepayment Facility, TEG shall, pursuant to exemptions from registration, qualification and/or prospectus requirements under applicable securities laws, grant Blue Moon warrants to acquire common shares of TEG with an aggregate exercise price of US$25 million (the "TEG Warrants"), to be issued on the fifth (5th) business day following today. The TEG Warrants shall have a strike price equal to the greater of: (i) the five (5)-day volume-weighted average price (the "VWAP") of TEG's shares ending on the fifth business day following today, or (ii) the Nasdaq minimum price under Nasdaq Rule 5635. The TEG Warrants shall have a term of three (3) years from the date of issuance and shall not be exercisable during the six (6)-month period following issuance.

c) Equity Subscription. TEG shall subscribe for and purchase US$25 million of new equity in Blue Moon, pursuant to exemptions from registration, qualification and/or prospectus requirements under applicable securities laws, within forty-five (45) days of the Announcement Date (the "Equity Subscription"), consisting of 3,500,000 units of Blue Moon (each, a "Unit") at a price of C$10.00 per Unit or a 31.8% premium to the closing price of Blue Moon on September 11. Each Unit shall be made up of one (1) common share of Blue Moon (each a "Unit Share") and one (1) common share purchase warrant (each, a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one (1) additional common share of Blue Moon (each, a "Warrant Share"). Subject to the approval of the TSXV, the exercise price of each Warrant Share shall be C$10.80. The Warrants shall be exercisable for a period of three (3) years following the closing of the Equity Subscription.

d) JV Investment. US$75 million capital injection into the APT plant by TEG. Equity ownership interests in the JV Entity shall be allocated as follows post investment: TEG – 70%, Blue Moon – 20% and EQ – 10%. TEG will operate the APT plant. Blue Moon's initial capital contribution to the JV Entity shall consist of the APT Plant and associated infrastructure along with its off-take commitment as outlined below.

Proceeds of the Blue Moon Investment shall be limited to use solely in connection with the Springer Project, with all mine and mill proceeds earmarked for tungsten development purposes only.

Completion of the Transactions described herein is subject to receipt of, among other things, acceptable due diligence results for any non-equity deal components; all requisite approvals of the TSXV and other regulatory authorities; and approval, execution and delivery of the required definitive agreements. Within 45 days, TEG is expected to close on a US$50 million investment in the BM Group as defined below, half of which is the Equity Subscription and half of which is the Tranche 1 investment.

Blue Moon and TEG shall enter into a mutually agreed investor rights agreement (the "Investor Rights Agreement") providing TEG with customary pro-rata equity participation rights in future Blue Moon financings and a board seat upon completion of the Equity Financing.

JV Investment and Off-take Mechanics

Under the currently contemplated terms of the Transaction, BM Group shall maintain complete ownership and operation of the mine and mill at the Springer Project, including holding all permits to operate at the site. The BM Group shall retain ownership of certain ancillary assets on behalf of the JV Entity, including but not limited to utilities interconnections, water rights, and tailings facilities. A site master plan will be entered into by the JV entity, covering aspects such as real estate and access, concentrate receiving, production and shipping, development of solar and natural gas power facilities and other expansions, laboratory, utilities, and waste/tailings with a capital recovery costs and site wide water rights.

APT production is anticipated to be phased as follows on the Springer site:

1. Phase 1 APT ("Phase 1 APT") shall target 4,000 tons of APT production capacity per year including infrastructure for blue tungsten oxide ("BTO") capacity and an additional leaching line.
2. Subsequent phased expansions of the APT Plant's production capacity shall be driven by demand and the need to support Blue Moon's mine concentrate production, EQ's current and new mines concentrate production and other new mines (including EQ's mines), funded pro-rata among the Parties after Phase 1 APT is completed (assuming less than US$100 million capital cost).

Sourcing of concentrate for the APT plant, and off-takes, are expected to be as follows:

a) TEG Years 1-5: The JV Entity will allocate up to 75% of input volume to Springer Project production annually. If Blue Moon lacks sufficient production to fill this threshold, TEG may source material from other offtake agreements to which it is a party (entered into at the request of, and with support from, DoW).

b) EQ Years 1-5: Subject to a cap of 1,000 tons of production capacity per year, the JV Entity will allocate 25% of input volume to EQ concentrate annually. If EQ production is insufficient to provide 25% of the APT Plant input capacity annualized or if EQ does not take its allocation annually, any unused volume shall be available to tungsten concentrates produced from the Springer Mine ("Springer Concentrate") and/or the third-party sourcing described in (a) above.

c) After Year 5: Blue Moon shall be granted a proportional "most-favored-nation" right to the APT Plant capacity for 90% of the capacity, with EQ having 10%.

d) Blue Moon Offtake: The JV Entity will enter into an agreement for the right to 100% offtake of Springer Concentrate, so long as the JV Entity has the capacity to process 100% of the Springer Concentrate. Any excess Springer Concentrate will be placed by the JV Entity by best possible process.

e) EQ Offtake: The JV Entity and EQ shall enter into an off-take agreement for 4,000 tonnes of WO₃ contained in EQ concentrate over an eight (8) year period commencing upon APT Plant commissioning (the "EQ Offtake Agreement").

Blue Moon shall sell the Springer Concentrate to the JV Entity at the same pricing terms that EQ receives for its offtake into the APT Plant pursuant to the EQ Offtake Agreement. Until commercial production is achieved at the APT Plant, the JV Entity shall sell the Springer Concentrate into the open market, with best efforts by all Parties to place volumes into the market to mutually agreed upon facilities at the best possible price.

Separately, EQ is completing preliminary ore sorting work at the Springer mill using its proprietary technology. Initial results have been positive, with further test work recommended. Pending the outcome of the additional test work, it is the intention of all Parties to install ore sorting at the Springer mill.

Other aspects of the JV Entity include supermajority rights on certain decisions standard for joint venture arrangements, operatorship requirements, cross-party security, step-in rights and remedies, standard dispute mechanisms and ordinary representation and warranties for such a transaction. Blue Moon also has certain minimum delivery requirements into the APT plant, which if they cannot be cured, could mean cancellation of the Blue Moon Offtake.

The Parties have third-party legal representation for Blue Moon at Bennett Jones LLP, TEG at Ellenoff Grossman & Schole LLP, and EQ at Sidley Austin LLP.

Qualified Persons

The technical and scientific information of this news release has been reviewed and approved by Mr. Reza Ehsani, P.Eng., a Blue Moon Officer as SVP Projects, and a non-Independent Qualified Person, as defined by NI 43-101.

About Blue Moon

Blue Moon is advancing 5 brownfield polymetallic projects, including the Nussir copper-gold-silver project in Norway, the NSG copper-zinc-gold-silver project in Norway, the Blue Moon zinc-gold-silver-copper project in the United States, the Springer tungsten-molybdenum project in the United States and the Apex germanium-gallium-copper project in the United States. All 5 projects are well located with existing local infrastructure including roads, power and historical infrastructure. Zinc, copper and tungsten are currently on the USGS and EU list of metals critical to the global economy and national security and germanium and gallium are also on the USGS list of critical metals. Major shareholders include Teck Resources Limited, funds managed by Oaktree Capital Management, Hartree Partners LP, Wheaton Precious Metals, Altius Minerals Corporation, Baker Steel Resources Trust, LNS and Monial. More information is available on the Company's website (www.bluemoonmetals.com).

About The Elmet Group

The Elmet Group is a U.S.-based provider of precision-engineered components and advanced high-energy systems for the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries. TEG operates through three segments, Critical Materials Components (CMC), Engineered Microwave Products (EMP), and Elmet Refining & Trading (ERT), leveraging materials science and precision engineering expertise to deliver high-performance solutions. The Elmet Group is dedicated to strengthening domestic manufacturing capabilities to support the U.S. and its allies' needs in both critical materials and advanced high-power microwave systems.

About EQ Resources

EQ Resources Limited is a leading global tungsten mining company dedicated to sustainable mining and processing practices. EQ is listed on the Australian Securities Exchange, with a focus on expanding its world-class tungsten assets at Mt Carbine in North Queensland (Australia) and at Barruecopardo in the Salamanca Province (Spain). EQ leverages advanced minerals processing technology and unexploited resources across multiple jurisdictions, with the aim of being a globally leading supplier of the critical mineral, tungsten. EQ aims to create shareholder value through the exploration and development of its current project portfolio whilst continuing to evaluate corporate and exploration opportunities within the new economy and critical minerals sector globally.

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

CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable Canadian and United States securities laws. All statements included herein, other than statements of historical fact, may be forward-looking information and such information involves various risks and uncertainties. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions.

Without limiting the generality of the foregoing, this news release contains forward-looking information pertaining to the following: the completion of the Transactions, the expected benefits and synergies from the Transactions; and other matters ancillary or incidental to the foregoing.

A number of risks, uncertainties and other factors could cause actual results and events to differ materially from those expressed or implied in the forward-looking information or could cause the Company's current objectives, strategies and intentions to change. These risks and uncertainties include but are not limited to: the inability of Blue Moon to complete and integrate the Transaction; risks associated with the integration of Springer project operations; risks associated with mining operations in Nevada; regulatory and permitting risks at the state and federal level including with respect to the development of Springer; and management's ability to anticipate and manage the factors and risks referred to herein. A comprehensive discussion of other risks that impact Blue Moon can also be found in its public reports and filings which are available at www.sedarplus.ca and on the website of the U.S. Securities and Exchange Commission at www.sec.gov.

The forward-looking information is based on certain key expectations and assumptions made by Blue Moon's management, including but not limited to: expectations concerning prevailing commodity prices; the ability to obtain, renew and extend permits as required; estimates of reserves and resources at Springer; potential volumes of production tied to Springer; availability of utilities; and the execution at Springer.

Any forward-looking information contained in this news release represents management's current expectations and is based on information currently available to management and is subject to change after the date of this news release. Accordingly, the Company warns investors to exercise caution when considering statements containing forward-looking information and that it would be unreasonable to rely on such statements as creating legal rights regarding the Company's future results or plans.

The Company cannot guarantee that any forward-looking information will materialize and readers are cautioned not to place undue reliance on this forward-looking information. Except as required by applicable securities laws, the Company is under no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law. All of the forward-looking information in this news release is qualified by the cautionary statements herein.

View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-moon-the-elmet-group-and-eq-resources-announce-a-us150-175-million-investment-into-the-springer-tungsten-complex-nevada-to-strengthen-the-us-tungsten-supply-chain-302877075.html

SOURCE Blue Moon Metals

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How is the US$50 million tungsten prepayment facility to Blue Moon structured and repaid?

Elmet plans to provide the Blue Moon group with a US$50 million tungsten prepayment facility funded in two US$25 million tranches. Tranche 1 is expected to fund at closing within 45 days of the announcement. Tranche 2 will fund only after agreed construction and readiness milestones are met for the mine, mill and flotation circuit, and, if applicable, ore sorting progress. The facility is to be repaid through a 25% credit against sales of Springer concentrate.

What are the key terms of Elmet’s US$25 million equity subscription in Blue Moon?

Elmet is expected to subscribe for US$25 million of new Blue Moon equity within 45 days via 3,500,000 units at C$10.00 per unit, a 31.8% premium to Blue Moon’s 11 September closing price. Each unit comprises one common share and one warrant. Subject to TSXV approval, each warrant will have an exercise price of C$10.80, be exercisable for three years following closing, and gives the right to purchase one additional Blue Moon share.

How will concentrate supply be allocated to the APT plant in the early years?

For Years 1–5, the JV Entity expects to allocate up to 75% of APT plant input to Springer Project concentrate annually, with Elmet allowed to source other material if Blue Moon’s production is insufficient. Subject to a 1,000 ton per-year cap, 25% of input is expected to come from EQ concentrate. Any unused EQ allocation may be filled by Springer concentrate or third-party material.

What ownership and operating roles will each party have at Springer and in the JV Entity?

Blue Moon is expected to maintain 100% ownership and operation of the Springer mine and mill and will hold all operating permits at the site. The APT plant and associated infrastructure will be owned by the JV Entity, with post-investment equity interests of TEG 70%, Blue Moon 20% and EQ 10%. TEG will operate the APT plant, while Blue Moon retains certain ancillary assets such as utilities interconnections, water rights and tailings facilities on behalf of the JV Entity.

What rights does Blue Moon receive in relation to Elmet and future financings?

In connection with the prepayment facility, Blue Moon is to receive TEG Warrants to acquire Elmet shares with an aggregate exercise price of US$25 million, with a three-year term and a strike price based on the five-day VWAP or Nasdaq minimum price, and not exercisable for six months after issuance. Separately, Blue Moon and Elmet plan to enter an Investor Rights Agreement providing Elmet with customary pro-rata participation rights in future Blue Moon financings and a board seat upon completion of the equity financing.