Blue Moon Metals Inc. announced the closing of a US$5 million private placement of common shares with Oaktree XII BL MN Holdings L.P., an Oaktree Capital Management fund. This is the first tranche of a potential US$20 million equity commitment from funds managed by Oaktree and Hartree Partners. The shares are subject to a four-month hold period.
Simultaneously, Blue Moon received conditional approval from the TSX Venture Exchange for a bridge loan. This loan, facilitated by Oaktree and Hartree, will provide up to US$25 million for the company’s projects. Blue Moon has already drawn down the first US$12.5 million installment. The loan is secured by assets including the Nussir copper-gold-silver project in Norway and the Blue Moon polymetallic project in California. Hartree received 1,045,000 common shares concurrently with the first drawdown, also subject to a four-month hold period.
This funding represents the initial phase of a broader investment package potentially reaching US$140 million. The package includes the bridge loan, equity investments, a potential senior secured term loan of up to US$50 million, and a redeemable precious metals stream agreement potentially worth US$70 million. The additional funding is contingent upon the satisfaction of specific conditions.
The initial funding will be used for pre-construction activities at the Nussir project, encompassing detailed engineering, procurement of key materials, underground development, and operational preparations. The bridge loan will provide working capital for both Nussir and the Blue Moon project. The larger loan and streaming agreement are intended to finalize the Nussir project, pending conditions met by March 31, 2026.
Bennett Jones LLP acted as legal counsel for Blue Moon, while Torys LLP represented Hartree and Oaktree.
Blue Moon is developing three polymetallic projects: the Nussir project in Norway, the NSG project in Norway, and the Blue Moon project in the United States. These projects benefit from existing infrastructure. Zinc and copper are deemed critical metals by the USGS and the EU.
Hartree Partners is a global merchant commodities firm specializing in various commodities, including metals. Their Mine Finance & Investments division focuses on strategic capital partnerships.
Oaktree Capital Management is a significant global investment manager with expertise in alternative investments, including credit, equity, and real estate.
The company noted that this news release contains forward-looking statements, subject to inherent uncertainties and risks. Investors are advised to exercise caution when considering these statements.
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