Blue Moon Metals Secures up to US$140 Million Project Finance Package from Hartree/Oaktree to Advance Flagship Nussir Project in Norway
Executive Summary
- Blue Moon Metals entered into a Memorandum of Understanding with Hartree Partners and Oaktree Capital Management for an investment package that could provide up to US$140 million to fund the Nussir Copper Project in Norway.
- The package includes a US$25 million bridge loan (executed), an initial US$5 million equity subscription (with a non‑binding LOI for up to US$15 million additional equity), a US$50 million senior secured term loan, and a US$70 million redeemable precious metals stream.
- Funds from the bridge loan and equity will be used for early works, detailed engineering, procurement of long‑lead items, underground development, and other pre‑construction activities, with drawdowns expected shortly after customary closing conditions are satisfied.
Key Details
- Bridge Loan – US$25 million
- Executed; funds to be drawn once conditions precedent and TSXV approval are met.
- Maturity: June 30 2027; interest = SOFR + minimum 3.0% + 8.0% margin.
- Structuring premium: 2.0% of commitment paid in cash at first advance.
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Use of proceeds: early works, pre‑construction, development, construction, operation, and general corporate working capital for the Nussir Project.
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Equity Participation – Up to US$20 million
- Initial subscription: US$5 million at C$3.30 per share for 2,092,173 new common shares (closed ~ Aug 25 2025).
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Non‑binding LOI for additional US$15 million equity, subject to maintaining combined Oaktree/Hartree ownership below 19.9% and TSXV approval.
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Senior Secured Term Loan – US$50 million
- 6.5‑year term from closing; drawdowns in tranches of at least US$10 million.
- Interest: SOFR + 3.00% base, +7.75% margin during “Holiday Period” (first 6 months after project completion or June 2028), then +7.00% thereafter; capitalized interest before holiday period ends.
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Use of proceeds: construction, development, operation, and working‑capital needs for Nussir.
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Redeemable Precious Metals Stream – US$70 million
- Stream rate: 70% of payable gold production & 75% of payable silver production (reduced by 50% after step‑down milestones).
- Purchase price: 15% of LME gold/silver price per ounce (increasing to 20% after step‑down).
- Milestones for step‑down: 24,000 oz gold or 2,860,000 oz silver produced.
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Redemption right: Company may repurchase up to 50% of the stream subject to TSXV approval.
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Additional Terms
- Bonus Shares: Hartree to receive 1,045,000 common shares concurrent with first bridge loan draw (subject to statutory hold).
- Security: First‑priority lien on all present and after‑acquired personal property of Blue Moon and assets of the Nussir Project; senior secured interest for term loan.
- Incentive Stock Options: 34,000 options granted to a consultant at $3.57 exercise price, vesting over three years.
Notable Quotes
“Securing this strategic investment marks a major milestone for the Company,” said Christian Kargl‑Simard, CEO. “The Bridge Loan and equity provide us with US$30 million in available capital needed to ensure development momentum… we expect to announce at least one additional strategic financing package over the next 2 months covering investment over Blue Moon’s portfolio of assets.”