Blue Moon Metals, along with the Elmet Group (TEG) and EQ Resources, has agreed to invest between $150m (C$208.52m) and $175m in the Springer Tungsten Complex in Imlay, Nevada, US.
Springer includes both open-pit and underground mines, a mill processing 1,200 tonnes per day (tpd) and an ammonium paratungstate (APT) plant capable of up to 4,000 tonnes per annum (tpa) of production.
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The parties signed a binding letter agreement outlining several transactions intended to strengthen the US tungsten supply chain.
This investment framework includes the creation of a joint venture (JV) entity to own and operate the APT plant, while Blue Moon Metals retains control over the mine and mill.
TEG plans to invest a total of $150m, comprising a direct investment in Blue Moon’s activities at the Springer site and an equity injection into the JV.
In addition, TEG and EQ have earmarked a further $25m (A$35.11m) as standby funding for the APT plant’s restart, if needed.
The investment includes a $50m tungsten prepayment facility provided by TEG to Blue Moon, to be repaid through sales credits against concentrate output from the Springer project.
The JV entity will direct a $75m capital injection from TEG to the APT plant. After the investment, equity participation will be split, with 70% held by TEG, 20% by Blue Moon and 10% by EQ. TEG will operate the APT plant.
Blue Moon CEO and director Christian Kargl-Simard said: “This is a great day for the US with regards to providing a major boost to the US tungsten supply chain.
“We are very appreciative of the commitment of all stakeholders to advance Springer as a team.”
Blue Moon will provide the APT plant and related infrastructure, as well as offtake agreements for tungsten concentrate.
The parties have agreed specific feedstock allocation and supply agreements, giving the Springer site priority for up to 75% of the APT feed during the first five years.
Completion of the proposed transactions relies on regulatory approvals, due diligence and execution of final agreements.
The parties expect to finalise a $50m initial investment within 45 days, half of which will be the equity subscription and half the first tranche of the prepayment facility.
The mine and plant are expected to return to operation in the fourth quarter of 2027, with the APT restart projected for the second half of 2028.
