Blue Moon shares rally on US$150 million Nevada tungsten investment deal
Blue Moon Metals Inc. [MOON-TSXV, BMM-NASDAQ], along with The Elmet Group Co. [ELMT-NASDAQ] (TEG) and EQ Resources Ltd. [EQR-ASX] have signed a binding agreement in relation to a series of transactions that are intended to unlock value at Blue Moon’s Springer Tungsten Complex in Nevada. Blue Moon acquired Springer in February 2026 and is targeting initial production in late 2027.
Blue Moon shares advanced on the news, rising 8.9% or 68 cents to $8.27. The shares traded in a 52-week range of $11.80 and $2.96.
Springer historically was one of the largest tungsten mines in the United States, consisting of open pit and underground mines, a 1,200 tonne per day mile and Ammonium Paratungstate plant (APT) capable of potentially producing up to 4,000 tonnes per annum. The facility is permitted for construction and received approval of its bonding requirements from the State of Nevada to start construction and redevelopment 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 million tonnes of 0.45% WO3, based on historical data and reports prepared by prior operators in 1984. The project has access to water, electricity, natural gas and tailings capacity and is a few kilometres from the Union Pacific rail-line and the i-80 highway. Further drilling this year and next is required to bring the historical resource in line with NI 43-101 standards of disclosure.
The contemplated transaction includes the formation of a joint venture entity among the parties to operate the APT Plant (the mine and mill will remain owned by Blue Moon), an equity investment by TEG into Blue Moon, TEG’s receipt of board representation in both Blue Moon and the Springer Project JV Entity, a supply agreement for EQ and Blue Moon tungsten concentrate offtakes to the APT plant at market pricing, a tungsten prepayment facility provided by TEG to Blue Moon to be repaid through a credit against sales of concentrate from Springer, and a site sharing agreement between Blue Moon and the JV Entity, covering the land, buildings utility, water, and service arrangements between the JV Entity and Blue Moon.
The transaction contemplates a total investment from TEG of approximately US$150 million, split between investments in Blue Moon’s activities at the Springer Site, and a contribution to the JV Entity. An additional $25 million has been set aside by TEG and EQ for additional standby requirements if needed to place the APT plant back in production.
Collectively, these transactions are all part of the broader TEG Landmark initiative with the U.S. Department of War (DoW) to secure America’s Tungsten Supply Chain. On Monday, the DoW announced a US$450 million investment into TEG, of which US$150 million has been designated a use of proceeds for the transaction, which is intended to solidify the U.S. tungsten supply chain for primary supply to aerospace, and defense contractors plus support for US industrial segments such as semiconductor, Energy, medical and industrial.