Blue Moon Metals Approves Final Investment Decision for Nussir Project
Blue Moon Metals' board of directors has approved a final investment decision on the construction for its Nussir project, located in northern Norway. The recent feasibility study on the project announced on April 16, highlighted a 13-year mine life with a nominal 6,000 ton per day underground mine and processing facility with ore production starting in Q3-2027. The company expects the remaining $184M of estimated capital costs required to complete the project will be covered by the company's existing cash on hand, available undrawn amounts on the $140M project finance package which was previously announced on August 19, 2025, and proceeds from the company's bought deal equity financing announced concurrently herewith and described further below. Separately, the company announced that its board of directors has agreed to initiate the planning stages to allow for potential production resumption at Blue Moon's Springer Mine and Mill complex in Nevada. The company completed its acquisition of Springer on February 10. Springer is a tungsten production facility consisting of an existing 1,300-ft vertical shaft and underground workings, a nominal 1,200 ton per day mill with rod/ball mills, grinding and flotation circuits, and a decommissioned ammonium paratungstate circuit including autoclave and related reagent systems. Springer continues to hold required water rights for the complex, and Blue Moon is actively advancing the permitting process to support the operation restart as soon as possible. From 1914 to 1958, Springer was one of the largest tungsten producing mines in the United States and is one of the highest grade tungsten deposits in the world. The deposit is located entirely on private fee lands. Tungsten prices have risen from $500/MTU to over $3000/MTU over the last seven months. In the opinion of the company, this rise is due to strong military and powder metallurgy requirements and reduced exports from China, which accounts for approximately 80% of global tungsten supply. The company is evaluating various plans with a goal of fast-tracking the facility back to production, with a target of Q4-2027. Management of Blue Moon has prepared an internal preliminary restart cost estimate of $50M, which is expected to be covered primarily through anticipated strategic financing activities and current cash on hand. Through its internal modelling, management of Blue Moon believes that the Springer complex could achieve potential production of 107,000 to 124,000 MTU within a good quality scheelite concentrate, subject to certain assumptions and qualifications. Management estimates the cash costs net of molybdenum production to be in the $300-$400/MTU range. Blue Moon is also evaluating the restart of the APT plant for 2028, and is reviewing strategic alternatives, including joint ventures with other western world tungsten producers and potential downstream partners and adding a powder metallurgy facility next to the APT plant. The board of directors' approval of operations to resume commercial production at Springer was made without the company having declared commercial production mining at Springer and without the benefit of a current feasibility study of mineral reserves demonstrating economic and technical viability.
Trade with 70% Backtested Accuracy
Analyst Views on BMM
About BMM
About the author

- Acquisition Details: Blue Moon Metals has entered into an agreement to acquire nine unpatented mineral claims adjacent to the Springer Mine from GoldPlay LLC and Robert Schafer for 188,199 common shares, $1 million in cash, and a sliding scale gross revenue royalty, which is expected to enhance the company's control over the mining district in Nevada.
- Mineral Potential Enhancement: The acquired claims cover historically identified veins, including the Stank, O'Byrne, and Sutton deposits, with high-grade tungsten trioxide drill results of up to 3.95% WO3 in drill hole SU-43, indicating significant mineral potential that could support future production.
- Strategic Consolidation: CEO Christian Kargl-Simard stated that this acquisition strengthens the company's land position around the Springer tungsten mine, strategically consolidating claims in the area and enhancing the company's market position and resource control capabilities.
- Transaction Conditions and Expectations: The acquisition is subject to TSXV approval, with completion expected by early May, and Blue Moon has the option to reduce the royalty to 1.5% for a cash payment of $2 million within three years, providing flexible financial arrangements for the company.
- Acquisition Agreement: Blue Moon Metals has entered into an agreement to acquire claims adjacent to its Springer Mine in Pershing County, Nevada, from GoldPlay LLC and Robert Schafer for a total consideration of 188,199 common shares, $1 million in cash, and a sliding scale gross revenue royalty, indicating the company's proactive approach to expanding its mining operations.
- Cash and Equity Combination: The transaction involves a payment of $1 million in cash and 188,199 common shares, reflecting the company's flexibility in resource acquisition while reducing cash flow pressure through equity payments, which aids in maintaining financial stability.
- Strategic Location Advantage: The acquired claims are located near the Springer Mine, enhancing Blue Moon's resource base in Nevada, which is expected to boost the company's production capacity and market competitiveness, further solidifying its position in the mining sector.
- Future Revenue Potential: By incorporating a sliding scale gross revenue royalty, Blue Moon Metals will be able to secure a continuous revenue stream from future mineral extraction, providing additional financial security and laying the groundwork for long-term growth.
- Investment Decision: Blue Moon Metals' board has approved the investment for the Nussir project in northern Norway, which is expected to start ore production in Q3-2027 with a 13-year mine life and a nominal capacity of 6,000 tonnes per day, reflecting the company's strategic commitment to resource development.
- Funding Assurance: The company anticipates that the remaining US$184 million in capital costs will be covered by existing cash, undrawn amounts from a US$140 million project finance package, and proceeds from a concurrent equity financing, ensuring smooth project advancement and reducing financial risk.
- Springer Mine Resumption: Blue Moon is planning to restart production at the Springer Mine in Nevada, historically one of the largest tungsten mines in the U.S., with a target to resume operations by Q4-2027, further solidifying the company's leadership position in the North American tungsten market.
- Impact of Rising Tungsten Prices: Tungsten prices have surged from US$500/MTU to over US$3000/MTU in the past seven months, driven by strong military demand and reduced exports from China, positioning Blue Moon to capitalize on this market opportunity, with Springer expected to significantly enhance the company's revenue potential.
- Gallium Price Surge: Gallium prices have soared to $2,269 per kilogram in 2025, marking a 141% increase since the beginning of the year, primarily due to disruptions in aluminum production caused by Middle Eastern conflicts, prompting companies and governments to seek alternative sources.
- Aluminum Resource Advantage: Alcoa possesses bauxite reserves across seven global mines in 'safe' locations such as Australia, Brazil, Guinea, and Saudi Arabia, enabling it to meet the rising demand for aluminum and gallium, thereby enhancing its market competitiveness.
- Improved Financial Health: In the first quarter, Alcoa reported revenue of $3.19 billion, down 7% sequentially, yet earnings per share doubled to $1.60, driven by a 12.2% increase in aluminum prices, showcasing the company's enhanced profitability amid Middle Eastern shipping disruptions.
- Teck's Strategic Positioning: Although Teck Resources is not a gallium producer, it is establishing gallium processing infrastructure by selling its Utah mine while retaining an 8% stake, positioning itself to leverage government subsidies and reduce direct mining risks, thus solidifying its role in the North American semiconductor supply chain.
- Gallium Recovery Investment: Alcoa is investing in a gallium recovery plant in Western Australia, supported by $200 million from the Australian government, aiming for an annual production of 100 million tons, which enhances its competitive edge in the global gallium market.
- Aluminum Price Surge Boosts Profitability: Alcoa reported Q1 revenue of $3.19 billion, down 7% sequentially, but earnings per share reached $1.60, doubling from Q4 2025, primarily driven by a 12.2% increase in aluminum prices, indicating improved profitability.
- Teck Resources' Strategic Positioning: Teck Resources sold its gallium mine in Utah while retaining an 8% stake and securing a 0.5% net smelter return, aiming to establish gallium processing infrastructure that mitigates direct mining risks and strengthens its role in the North American semiconductor supply chain.
- Surging Market Demand: With China controlling global gallium production and imposing export limits, gallium prices have surged by 141% to $2,269 per kilogram since early 2025, driving both Alcoa and Teck Resources' stock prices up over 70% in the past year.
- Financing Amount: Blue Moon Metals successfully issued 526,617 common shares to Hartree Partners, raising approximately C$4.8 million, which is expected to be utilized for the development of the company's polymetallic projects and general corporate purposes.
- Project Development: The financing will support the advancement of five brownfield polymetallic projects in Norway and the United States, particularly the Nussir copper-gold-silver project and the Blue Moon zinc-gold-silver-copper project, enhancing the company's competitiveness in the critical metals market.
- Shareholder Structure: Major shareholders of Blue Moon include renowned investment firms such as Teck Resources and Hartree Partners, which not only provide financial backing but also bolster the company's credibility and influence within the industry.
- Regulatory Approval: The financing remains subject to final approval by the TSX Venture Exchange, and the issued common shares will be subject to a statutory hold period of four months and one day, ensuring investor rights and market stability.









