Blue Moon, Elmet Group, EQ Resources plan $150M-$175M tungsten investment
The companies said they have a binding letter agreement for strategic transactions around Blue Moon's Springer tungsten complex in Nevada. The package contemplates about $150 million of investment and standby requirements if needed to place the APT plant back in production.
Binding letter agreement dated September 11, 2026 regarding a series of strategic transactions intended to unlock the value of Blue Moon's Springer Tungsten Complex ("Springer"), located in Imlay, Nevada. Springer historically was one of the largest tungsten mines in the United States, and consisting of open pit and underground mines, a 1,200 Tpd mill and an Ammonium Paratungstate ("APT") plant capable of potentially producing up to 4,000 Tpa (collectively, the "Springer Project"). The facility is permitted for construction and received approval of its bonding requirements from the State of Nevada to start construction and redevelopment of the mine on August 20, 2026.
The facility is largely on fee lands, and contains a historical mineral resource from General Electric and Utah International Inc. 45% WO3 based on historical data and reports prepared by the prior operators in 1984, as well as access to water, electricity, natural gas and tailings capacity and is a few miles away from the Union Pacific rail-line and the I-80 highway. The Company has not completed the work necessary to have the historical mineral resource estimate verified by a QP. The Company is not treating the estimate as a current NI 43-101 defined resource and the historical resource estimate should not be relied upon.
Further drilling this year and next year will be used to update the resource estimate, which will subsequently be reported in accordance with NI 43-101 standards. On September 3, 2026, Blue Moon acquired additional water rights and land to access the Union Pacific rail-line, with the potential to install a load-on/out facility. S. market.
The contemplated transactions include: i) the formation of a joint venture entity (the "JV Entity") among the Parties to own and operate the APT Plant (the mine and mill will remain owned by Blue Moon), (ii) an equity investment by TEG into Blue Moon, (iii) TEG's receipt of board representation in both Blue Moon and the Springer Project JV Entity; (iv) a supply agreement for EQ and Blue Moon tungsten concentrate offtakes to the APT plant at market pricing, (v) a tungsten prepayment facility provided by TEG to Blue Moon to be repaid through a credit against sales of concentrate from Springer, and (vi) a site sharing agreement between Blue Moon and the JV Entity, covering the land, buildings, utilities, water, and services arrangements between the JV Entity and Blue Moon (collectively, the "Transactions").
The Transactions contemplate a total investment from TEG of approximately US$150 million, split between, (i) investments in Blue Moon's activities at the Springer Site (the "Blue Moon Investment"); and (ii) a contribution to the JV Entity (the "JV Investment" and, together with the Blue Moon Investment, the "Project Investment"). An additional US$25 million has been set aside by TEG and EQ for additional standby requirements if needed to place the APT plant back in production. All Parties involved are arms-length. S.
Department of War (the "DoW") to Secure America's Tungsten Supply Chain. The DoW has been supportive in advancing the Transactions, including completing a NEPA review of Springer. Earlier today, the DoW announced a US$450 million investment into TEG, of which US$150 million has been designated as use of proceeds for the Transactions. S.
S. industrial segments such as Semiconductor, Energy, Medical and Industrial. In relation to this Transaction, The Elmet Group has established Elmet Refining & Trading (ERT) as a new division.