Blue Moon Metals Secures up to US$140 Million Project Finance Package from Hartree/Oaktree to Advance Flagship Nussir Project in Norway
TORONTO, Ontario, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Blue Moon Metals Inc. ("Blue Moon" or the "Company") (TSXV:MOON; OTCQX: BMOOF), (TSXV: MOON; OTCQX:BMOOF), is pleased to announce that it has entered into a memorandum of understanding with Hartree Partners, LP ("Hartree") and funds managed by Oaktree Capital Management, L.P. ("Oaktree", together with Hartree, the "Lenders", and each a "Lender") which consists of a previously agreed to bridge loan (the "Bridge Loan") with Nussir ASA, a 93.55% owned subsidiary of the Company, as borrower, and Keystone Mines Inc., Blue Moon Norway AS and Repparfjord Eiendom AS, each a wholly owned subsidiary of the Company, as guarantors, as well as terms related a project financing package (the "Project Finance Package" and together with the Bridge Loan, the "Investment Package") which subject to various milestones, can provide for up to US$140 million of support for the continued development and construction of the Company's flagship, fully permitted Nussir Copper Project ("Nussir" or the "Project"), located in Norway. The Project Finance Package terms include a US$50 million senior secured term loan (the "Senior Secured Term Loan"), a US$70 million precious metals stream (the "Redeemable Precious Metals Stream Agreement"), and an equity investment of up to US$20 million (subject to a 19.9% Oaktree / Hartree combined ownership limitation). The Project Finance Package is subject to customary approvals, diligence and closing conditions.
The definitive Bridge Loan agreement has been signed. It is expected that the funds will be available for drawdown shortly thereafter, upon the finalization of customary post-closing security arrangements. Additionally, a subscription agreement for US$5 million has been signed and the corresponding equity issuance is expected to close on or about August 25, 2025. The Bridge Loan and equity investment will be subject to the approval of the TSX Venture Exchange (the "TSXV").
Highlights of the full Investment Package:
US$25 million Bridge Loan, Executed and the Company expects to draw on the Bridge Loan to fund critical early works, subject to the satisfaction of all conditions precedent to the first advance and the approval of the TSXV.
Up to US$20 million in equity, Oaktree has subscribed to US$5 million initial equity which is expected to close upon receipt of conditional approval from the TSXV. Non-binding follow on letter of intent of up to US$15 million to be completed upon the occurrence of certain events and capped to maintain ownership below a 19.9% threshold between the Lenders and subject to certain closing conditions.
Up to US$50 million Senior Secured Term Loan & US$70 million Redeemable Precious Metals Stream Agreement – Non-binding letter agreement signed; provides non-dilutive funding aligned with production,, available post-final investment decision, subject to customary milestones and closing conditions.
The initial capital from the Bridge Loan and equity investment will support key early works and pre-construction activities including detailed engineering, procurement of long-lead items, underground development, and operational readiness. The Bridge Loan is structured to provide working capital for Nussir and Blue Moon activities ahead of the Project Finance Package closing, following the satisfaction of certain defined conditions by March 31, 2026, including delivery of the previously announced Worley feasibility study targeted for February 2026.
"Securing this strategic investment marks a major milestone for the Company," said Christian Kargl-Simard, CEO. "The Bridge Loan and equity provide us with US$30 million in available capital needed to ensure development momentum, while the broader financing package establishes a clear path to full project funding in a well-balanced approach in a manner that aligns with long-term shareholder interests. This partnership reflects the strength of our Project, the ongoing support of our strategic partners, and the confidence in our team's ability to deliver across the asset base. We expect to announce at least one additional strategic financing package over the next 2 months covering investment over Blue Moon's portfolio of assets."
Key terms of the Bridge Loan are as follows:
BRIDGE LOAN, US$25 MILLION
Term and Maturity: The Company expects to satisfy the conditions precedent to the first advance in the coming weeks. The Bridge Loan matures June 30, 2027.
Interest Rate:
3-month term SOFR or equivalent index, subject to a minimum base interest rate of 3.0% per annum plus 8.0%.
Structuring Premium:
2.0% of the amount of the total commitment, ...
