Blue Moon to acquire Apex mine from Teck

Executive Summary

• Blue Moon Metals Inc. has entered into a definitive agreement to acquire 100% of Teck American Inc.'s Apex germanium, gallium, and copper mine in Utah, positioning Blue Moon as a key stakeholder in North American critical mineral supply chains.
• The transaction includes significant strategic synergies, granting Teck life-of-mine zinc concentrate offtake rights from Blue Moon’s California mine and marketing rights for Apex products, while leveraging Teck’s Trail smelting operations for processing.
• Blue Moon is simultaneously advancing the redevelopment of its Blue Moon mine in California (targeting production in 2028) and the Springer complex in Nevada to serve as a regional metallurgical hub for processing materials from both the Blue Moon and Apex mines.

Key Details

• Transaction Structure: Blue Moon acquires 100% of the Apex mine (26 patented and 9 unpatented claims, 250 hectares) from Teck American Inc.
• Consideration:
  • Issuance of 7,031,959 common shares to Teck, representing 8.0% of Blue Moon’s issued and outstanding shares on an undiluted basis.
  • A 0.5% net smelter return (NSR) royalty in favor of Teck on the Apex property.
  • Life-of-mine zinc concentrate offtake rights in favor of Teck for the Blue Moon mine on preferential market terms.
  • Marketing rights in favor of Teck for products produced from Apex or within one kilometer of the property boundary.
  • Investor rights for Teck, including equity participation, top-up, and information rights.
• Apex Mine (Utah) Details:
  • Historic producer of germanium (Ge), gallium (Ga), and copper.
  • Peak production: 10,270 tons yielding 1,645 lb Ga, 5,634 lb Ge, and 224,800 lb Cu.
  • Historical reserves (Hecla 1989): 230,200 tons at 0.100% Ge, 0.046% Ga, and 1.6% Cu.
  • 2018 estimate: 1 million tonnes at 0.087% Ge, 0.033% Ga, 1.8% Cu, and 41 g/t Ag.
  • Blue Moon plans to fast-track technical studies, metallurgical testing, and permitting to support a final investment decision for redevelopment.
• Blue Moon Mine (California) Details:
  • Advanced-stage zinc-copper-gold-silver project in Mariposa County.
  • Historical production (1943-1945): 55,656 tons grading 12.3% Zn, 0.36% Cu, 0.48% Pb, 3.75 oz/t Ag, and 0.062 oz/t Au.
  • NI 43-101 Resource Estimate (March 2025): Potential for annual average production of 22,566 oz Au, 62.3M lbs Zn, 681,784 oz Ag, and 7.2M lbs Cu over a 10+ year mine life.
  • Permits received April 2025; construction of exploration decline began Oct 6, 2025 (140m advanced).
  • Production forecast: 2028.
  • Material to be processed at Springer complex, with zinc concentrate smelted at Teck’s Trail operations.
• Springer Complex (Nevada) Details:
  • Former tungsten milling facility acquired Feb 2026.
  • Capacity: Upgraded from 950 tpd to 1,350 tpd nominal (approx. 1,200 tpd effective).
  • Infrastructure: 1,360-foot vertical shaft, 1,200-ton-per-day mill, automated grinding/flotation circuits, water rights, and most necessary permits.
  • Strategic role: Regional metallurgical hub to process Blue Moon and Apex materials; potential to restart Springer tungsten mine.
• Springer Tungsten Mine (Nevada) Details:
  • Historic resource estimate (1984): 10.7 million tonnes at 0.45% tungsten (not NI 43-101 compliant).
  • Plans to initiate drill program in 2026 to update resource model and assess underground conditions.
• Transaction Conditions: TSX Venture Exchange approval, definitive agreements, and customary items. Completion expected in March 2026. No finders' fees.

Notable Quotes

• Christian Kargl-Simard, CEO of Blue Moon: "Underground development at the Blue Moon mine is advancing well, which, together with the acquisition of the Apex mine and our redevelopment of the Springer metallurgical complex and Springer tungsten mine, provides a unique hub and spoke platform for U.S. critical metals growth. Teck and Blue Moon are logical partners, combining Blue Moon's U.S. project pipeline and processing capacity at Teck's Trail operations."
• Ian Anderson, Teck Executive Vice-President and Chief Commercial Officer: "Following our cornerstone investments to rebuild zinc, lead and silver capacity in Idaho's Silver Valley, revitalizing the long-standing connection between U.S. miners, and our smelting and refining complex in Trail, this transaction with Blue Moon marks another important step to develop new U.S. sources of critical minerals."