Blue Moon Metals Finalizes Agreement to Sell Blue Moon Norway to ACG Metals Limited

Blue Moon Metals Inc. is excited to announce the completion of a definitive share purchase agreement with ACG Metals Limited, marking a significant milestone for the company. Under the terms of this arrangement, ACG Metals will acquire 100% of the equity of Blue Moon Norway AS. This acquisition is valued at approximately $220 million, predominantly in the form of ACG Class A Ordinary Shares.

The transaction encompasses key assets including the Nussir copper mine, which is already in the construction phase, and the NSG property, currently at the exploration stage. As part of the agreement, Blue Moon is expected to obtain ACG shares at an implied value of £18.70 each, based on the 30-day volume-weighted average price.

Strategic Implications for Blue Moon

Christian Kargl-Simard, CEO of Blue Moon, emphasized the strategic nature of this sale, which will not only streamline the company's portfolio but also reduce its debt load. He stated, “This transaction not only recognizes the value of our Norwegian assets but also simplifies our operations, allowing us to dedicate our resources towards our U.S.-based critical metals operations.”

The deal positions Blue Moon to concentrate on its domestic assets, particularly the Springer and Apex mines, which are targeted for production by the end of 2027. Shareholders stand to benefit from continued exposure to nine different commodities while maintaining an interest in the Nussir copper project.

ACG Metals, celebrating its achievement of being a cash flow-positive company in the copper sector, will assume control of the Nussir mine's transition to operational status. ACG's commitment to responsible and sustainable mining practices bodes well for the project’s future, as stated by ACG Chairman, Artem Volynets, who expressed enthusiasm about the collaboration.

Financial Overview

The all-share transaction structure means that Blue Moon will receive approximately 8.85 million shares, equating to about 27.6% ownership of ACG. Additionally, a lockup period will prevent immediate share sales, allowing for a stable transition. Following the closure, which is anticipated by the end of November 2026, ACG will work alongside Blue Moon’s current Norwegian team to ensure a seamless handover and maintain operational continuity.

The transaction is presently contingent upon customary closing conditions, including shareholder approvals from ACG and other regulatory endorsements, with Blue Moon shareholders not required to vote. This streamlined process underlines the confidence investors and managers have in the future of ACG Metals as they aim to consolidate and grow their copper production.

A Focus on Critical Metals

With this strategic shift, Blue Moon aims to reposition itself as a primary player in the U.S. critical minerals market. The current climate highlights a growing focus on metals considered vital for national security and technological advancement, especially as industries transition towards greener technologies. Blue Moon's commitment to leveraging its existing resources to tap into this market further reinforces its vision for sustainable growth.

In conclusion, the sale of Blue Moon Norway to ACG Metals not only showcases a strategic divestiture aligned with market demands but also sets the stage for Blue Moon to amplify its focus on U.S.-based critical metals mining projects, paving the way for future success and investor confidence.