#Canada #Toronto #Teck Resources #Blue Moon #Apex Mine

Blue Moon Metals to Acquire Apex Mine

Blue Moon Metals Inc. is poised to make significant strides in the North American minerals market through its acquisition of the Apex germanium, gallium, and copper mine from Teck American Incorporated. This strategic move marks a pivotal development for Blue Moon, as it strengthens their portfolio and advances critical mineral projects across the United States.

Strategic Acquisition Details

The Apex mine, located in Utah, has a rich history as a past-producing site for germanium and gallium, two minerals vital for various high-tech applications. As Blue Moon aims to secure a reliable supply chain for these critical resources, the acquisition encompasses the full ownership of the mine and aligns perfectly with the company’s goals to bolster domestic production and reduce reliance on foreign imports. The deal includes not only the mine itself but also a key partnership with Hartree Partners LP, crucial collaborators with the U.S. government in developing a $12 billion critical metals stockpile.

Key Benefits to Blue Moon

With this acquisition, Blue Moon is set to achieve several immediate benefits:
1. Integrated Processing Capacity: The company will be able to process zinc concentrates at Teck's Trail Operations, which aids in building a fully integrated supply chain within North America.
2. Resource Redevelopment: Plans are in place to redevelop the Apex mine, tapping into its potential to be a substantial source of germanium and gallium onshore, significantly boosting local resource availability.
3. Expanding Operations: The transaction opens doors to potentially restarting the permitted Springer tungsten mine in Nevada, which promises to fulfill a significant part of U.S. domestic demand for tungsten.
4. Enhanced Processing Capabilities: Expanding the Springer complex to facilitate critical mineral processing will offer support not just for the Apex project but also for other mines in the Western U.S.

Christian Kargl-Simard, CEO of Blue Moon, highlighted the importance of this acquisition, stating that it creates a unique platform for growth in U.S. critical metals. The strong synergy between Blue Moon's project pipeline and Teck’s processing capabilities sets the stage for a more robust infrastructure for mineral production in the region. Blue Moon's underground development at their Blue Moon Mine is progressing well, indicating a promising future for the combined operations.

The Mining Landscape

The acquisition showcases the increasing focus on domestic mineral production due to rising global demand, particularly for germanium and gallium, which are essential in the manufacturing of semiconductors and other advanced technologies. Blue Moon aims to elevate the operational capabilities of both the Apex and Springer mines to establish a leading position in the critical minerals sector.

Geographical Context and Mining Operations

Situated approximately 23 km from St. George, Utah, the Apex mine has the potential to rejuvenate the local economy by providing jobs and securing a stable supply of crucial minerals. Historically, the mine was significant for its production capabilities, notably during the mid-1980s when it became the primary source for germanium and gallium in the U.S.

Blue Moon's strategy is aimed not only at tapping into existing resources but also at ensuring sustainable practices that contribute to local and national economic growth. As the company's operations expand, they plan to engage actively with local communities to support development initiatives and ensure that their mining practices align with environmental standards.

Future Outlook

Looking ahead, Blue Moon Metals is committed to executing its robust exploration and operational plans. By integrating the Apex mine's output into their existing systems alongside the redevelopment of the Springer complex, they are on track to solidify their position as a key player in the North American critical minerals market. The latest transaction with Teck not only is a milestone for Blue Moon but also highlights an ongoing trend in the mining sector towards discovering sustainable domestic sources of critical resources. With the acquisition expected to complete this March, detailed technical studies and assessments will soon follow, positioning Blue Moon for success in the competitive landscape of critical mineral production.