Blue Moon Metals Ends Proposed Purchase of 33 U.S. Mineral Projects

Blue Moon Metals Inc. and a private vendor mutually terminated a proposed purchase of 33 tungsten and antimony projects in the western United States, ending a planned addition near the company’s Nevada complex.

On Oct. 30, Blue Moon announced that it and the private vendor had mutually terminated the proposed acquisition under an Aug. 10 letter agreement, ahead of its expected October close. Blue Moon announced the proposed acquisition Aug. 11, subject to TSX Venture Exchange approval. No reason for the termination or payment tied to it was disclosed.

The proposed acquisition covered projects near Blue Moon’s Springer tungsten complex in Nevada and was intended to complement the operation. It would have given Blue Moon 100% ownership of the portfolio. The projects included sites on land administered by the Bureau of Land Management and the U.S. Forest Service.

Blue Moon’s proposed payment included 2.8 million shares priced at $5.55 each, or about $15.5 million. The company also planned to pay $5 million in cash, split into $2.5 million at closing and $2.5 million on the first anniversary.

The terms included a 1% net smelter return royalty on each project and capped development milestone payments. Estimated annual holding costs for the portfolio were about $162,000.