02:53 PM EST, 11/27/2024 (MT Newswires) -- Blue Moon Metals ( BMOOF ) was at last look edging up after it entered Wednesday into separate binding letters of intent that will see it acquire all of the issued and outstanding common shares of both Nussir ASA and Nye Sulitjelma Gruver AS for US$67.3 million, and complete a minimum C$30 million equity financing.

Both Nussir and NSG are private Norwegian companies with properties in northern Norway.

A statement noted Blue Moon is acquiring a 100% interest in Nussir for US$55.3 million and a 100% interest in NSG for US$12 million, both to be satisfied in common shares of Blue Moon at a deemed price of $0.30 per Blue Moon Share, which will be the same price per subscription receipt in the concurrent equity financing.

NSG shareholders will also receive US$3 million in cash milestone payments related to permitting for tailings discharge followed by receipt of the operating permit for the NSG Property.

A maximum US$35.7 million of new equity is being raised with the set minimum of US$21.4 million by global mining investors.

The implied equity value of the transactions is approximately US$100-115 million on a "fully-diluted in-the-money basis, with the range based on the low and high end of the concurrent equity financing.

At closing, existing Blue Moon, Nussir and NSG shareholders will own a minimum of 12%, 55% and 12%, respectively, of Blue Moon Shares outstanding on a "fully-diluted in-the-money basis", assuming the low end of the concurrent equity financing, or 10%, 48% and 10%, respectively, assuming the maximum proceeds are raised in the concurrent equity financing.

Blue Moon CEO Christian Kargl-Simard said: "This transaction will create a new copper-zinc development company located in Tier 1 jurisdictions, focused on critical metals for the western world. It presents the opportunity for us to leverage our technical expertise and strong access to capital markets to unlock value for all shareholders by advancing and developing multiple base metals projects."

He added: "In a world where geopolitics and national security are front page topics in sourcing critical materials, we believe our foray into Europe and the United States is well timed. We plan on deploying the best available technologies on our projects and showing strong support for our communities and partner. First off though, it's time to show off results from the drill bit."

Blue Moon was up 0.005 at 0.335.

Price: 0.36, Change: +0.01, Percent Change: +1.43