Blue Moon Metals to construct Nussir project mine, Springer tungsten mine

Blue Moon Metals (BMM)’ 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.