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 Metals Inc. (MOON) announced a binding letter agreement dated September 11, 2026, with The Elmet Group (TEG) and EQ Resources for a US$150 million investment package into the Springer tungsten complex, alongside a US$25 million standby facility. The transaction is linked to the Department of War’s “TEG Landmark Initiative,” which announced a US$450 million investment into TEG, with US$150 million designated for these Springer transactions.

Under the terms of the agreement, TEG will provide a US$50 million tungsten prepayment facility to Blue Moon in two US$25 million tranches. Tranche 1 is expected within 45 days, while Tranche 2 is contingent on milestones. TEG will also subscribe for US$25 million of Blue Moon equity, acquiring 3,500,000 units at C$10.00 per unit. This represents a 31.8% premium to the C$7.54 close on September 11, 2026. Each unit includes one Blue Moon share and one warrant with a C$10.80 exercise price and a three-year term. Additionally, TEG grants Blue Moon warrants to acquire TEG shares with an aggregate exercise price of US$25 million; the strike is the greater of the five-day VWAP or Nasdaq minimum price, with a three-year term and a six-month lock-up.

TEG will contribute US$75 million into a new joint venture entity that will own and operate the APT plant. Post-investment ownership in the JV is structured as TEG 70%, Blue Moon 20%, and EQ 10%. TEG will operate the APT plant. The offtake and feed structure grants TEG up to 75% of input volume in years one through five, while EQ receives 25%, capped at 1,000 tonnes per year. After year five, Blue Moon receives 90% and EQ receives 10%. EQ receives an eight-year offtake for 4,000 tonnes of contained WO3. Blue Moon retains the Springer mine, mill, permits, and infrastructure, selling concentrate to the JV at the same pricing EQ receives.

Production targets remain a mine and mill restart in Q4 2027 and an APT restart in the second half of 2028. The historical resource of 10.7 million tonnes at 0.45% WO3 is not NI 43-101 compliant and must not be relied on; further drilling is planned. The transaction is a binding letter agreement, not a closed transaction; completion remains subject to due diligence, regulatory approvals including TSXV, and definitive agreements.

Blue Moon Metals Inc. (MOON) has secured a substantial financing package that includes a U.S. government-linked industrial partner, TEG, and tungsten producer EQ Resources. The deal provides US$50 million in non-dilutive, prepayment-style funding and US$25 million in equity at a 31.8% premium.

The joint venture structure reduces Blue Moon’s direct capital burden for the APT project but transfers 80% of APT plant ownership to TEG and EQ. Additionally, TEG and EQ receive preferential offtake and input rights for the first five years, which limits Blue Moon’s downstream margin capture.

While the transaction is material relative to Blue Moon’s market capitalization, it is not yet closed. The agreement includes complex conditions and depends on counterparty funding from TEG and the Department of War. Uncertainty regarding historical resources remains.

Blue Moon Metals Inc. (MOON) is a polymetallic critical minerals developer managing five brownfield projects: Nussir, a copper-gold-silver operation in Norway; NSG, a copper-zinc-gold-silver site in Norway; Blue Moon, a zinc-gold-silver-copper project in California; Springer, a tungsten-molybdenum facility in Nevada; and Apex, a germanium-gallium-copper site in Utah. The company also holds a 33-project tungsten and antimony portfolio in the western United States, which it targets for processing at Springer.

The Nussir project is the most advanced in the portfolio. It is fully permitted with a final investment decision made in April 2026. A feasibility study indicates an after-tax NPV8% of US$235 million and an internal rate of return of 19%, with a 13-year base mine life. Production is targeted for Q4 2027 or H1 2028.

Springer is the subject of the latest corporate release. Blue Moon acquired the asset on February 10, 2026, for US$18.5 million. The property includes a 1,200 tons per day mill and an ammonium paratungstate plant with up to 4,000 tons per annum potential. Construction was authorized in August 2026, with a target restart for the mine and mill in Q4 2027 and for the APT plant in the second half of 2028.

The Blue Moon project in California is currently in underground decline construction, with production targeted for 2028. Apex was acquired from Teck in March 2026, with re-permitting targeted for Q2 2027 and direct shipping ore targeted for Q3 2027.

The company’s royalty profile varies by asset. Springer has no stated overriding royalty on the main complex, but adjacent WO claims carry a 3-5% gross revenue royalty with a buy-down option to 1.5% for US$2 million. Apex carries a 0.5% net smelter return to Teck plus an assumed 3% NSR. Gage leases carry a 4% production royalty, 8% for fissionable materials, and 2% NSR on claims. Nussir has a 0.75% NSR to the government and Sámi, while the 33-project portfolio carries a 1% NSR per project.