Blue Moon Metals Inc. has entered into a binding letter agreement with The Elmet Group Co. and EQ Resources Limited for a US$150 million to US$175 million strategic investment package to develop the Springer Tungsten Complex in Imlay, Nevada.

The transactions restructure ownership and funding for the historically significant past producer, which consists of open-pit and underground mines, a 1,200-tonne-per-day mill, and an Ammonium Paratungstate processing plant. Under the arrangement, the parties will form a joint venture entity to own and operate the APT plant, with ownership allocated 70% to Elmet, 20% to Blue Moon, and 10% to EQ Resources. Blue Moon will retain complete ownership and operation of the mine and mill, alongside related utilities, water rights, and tailings facilities.

“This is a great day for the U.S. with regards to providing a major boost to the U.S. tungsten supply chain. We are very appreciative of the commitment of all stakeholders to advance Springer as a team.” — Christian Kargl-Simard, CEO and Director of Blue Moon

The funding package comprises a US$50 million tungsten prepayment facility and a US$25 million equity subscription in Blue Moon by Elmet, alongside a US$75 million capital injection into the joint venture plant and an additional US$25 million in discretionary standby funds set aside by Elmet and EQ Resources. Elmet will fund the initial US$25 million tranche of the prepayment facility and complete its equity subscription within 45 days. The initiative is backed by the U.S. Department of War, which has designated US$150 million from a broader US$450 million federal investment to support the transactions.

The project schedule targets resumption of production at the Springer mine and mill in the fourth quarter of 2027, followed by the restart of the APT plant in the second half of 2028. The processing facility targets an initial production capacity of up to 4,000 tons of APT per year, utilizing concentrate supplied by Blue Moon and EQ Resources under eight-year and five-year offtake agreements.

Completion remains subject to customary closing conditions, including the execution of definitive agreements, receipt of due diligence results, and approval from the TSX Venture Exchange.

“We believe this investment represents a significant step forward in rebuilding a secure, integrated U.S. tungsten supply chain - from domestic mineral production and processing through the advanced manufacturing capabilities required by critical U.S. industries and defense applications. The Elmet Group is proud to help establish and advance the infrastructure necessary to reduce our reliance on foreign sources of tungsten while strengthening American manufacturing and national security.” — Peter V. Anania, Chairman and CEO of The Elmet Group

The broad restructuring positions the Springer complex to re-emerge as a foundational asset in domestic critical mineral supply chains, supported by concurrent water rights expansions that more than double the facility's available industrial water permits in the Imlay basin.

Read the full announcement: 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