Blue Moon Metals Inc. (TSXV: MOON; OTCQX: BMOOF) has announced the successful closing of a US$5 million private placement alongside an initial US$12.5 million drawdown from a bridge loan facility backed by institutional investors Oaktree Capital Management and Hartree Partners. These funds mark the first tranche of a larger US$140 million investment package that will support the development of Blue Moon’s flagship Nussir copper-gold-silver project in northern Norway. The combined equity and debt funding places Blue Moon Metals in a stronger position to commence early works at Nussir while advancing the final feasibility and financing phases for full-scale construction.
The Nussir project is among the few fully permitted critical mineral assets in Europe with both advanced geology and strategic location advantages. Its progress comes amid heightened global demand for copper, driven by accelerating electrification across sectors such as electric vehicles (EVs), renewable energy, and industrial decarbonization. Institutional sentiment continues to favor brownfield projects with near-term cash flow potential, particularly in regions like Norway, which combine geopolitical stability with pro-mining policy frameworks.
What are the specific terms of the equity placement and bridge loan from Hartree and Oaktree?
The US$5 million equity investment was executed through a non-brokered private placement with Opps XII BL MN Holdings L.P., a fund managed by Oaktree Capital Management. The placement represents the first portion of a broader US$20 million equity commitment from funds managed by both Oaktree and Hartree. Common shares issued through this placement are subject to a mandatory hold period of four months and one day, in compliance with Canadian securities laws. The transaction remains subject to final approval from the TSX Venture Exchange (TSXV).
In parallel, Blue Moon Metals has drawn the initial US$12.5 million under a US$25 million bridge loan agreement. The facility allows the company to access capital in two tranches of equal value. The first drawdown has now been completed, with the second installment available upon meeting a defined set of conditions precedent. These include standard project and financial milestones, similar to those satisfied for the initial draw. The bridge loan is structured without finders’ fees and maintains terms that align with the company’s August 2025 disclosures regarding debt security and collateralization.
As security for the loan, Blue Moon and its associated borrower entities have granted the lenders a first-ranking lien over the Nussir project and the Blue Moon VMS project in California, along with all present and after-acquired personal property. This structure provides Hartree and Oaktree with collateral coverage across multiple geographies while offering Blue Moon sufficient working capital to advance its key assets through the pre-construction phase.
How will the initial capital infusion be allocated across project development priorities?
The newly raised funds will primarily support early-stage project activities at Nussir, including detailed engineering, procurement of long-lead items, underground development, and establishing operational readiness protocols. These activities are critical to maintaining the company’s timeline for the delivery of a final feasibility study, which is currently being led by Worley and targeted for completion by February 2026.
In addition to advancing Nussir, the bridge loan will also provide financial flexibility to support activities at the Blue Moon Project in California, a volcanogenic massive sulfide (VMS) deposit with zinc, gold, copper, and silver content. Located 22 miles northeast of Merced and approximately 120 miles southeast of San Francisco, the California-based asset provides diversification across both geography and commodity exposure.
The focus on long-lead procurement and engineering reflects the company’s strategy to mitigate supply chain delays and inflationary pressures—both of which have disrupted timelines across the global mining sector. By front-loading capital allocation into critical-path items, Blue Moon aims to de-risk the construction phase and ensure a smoother transition into production financing later in 2026.
What are the components of the full US$140 million investment package and how are they sequenced?
The US$140 million package is designed as a multi-instrument, phased funding structure to finance both pre-construction and full buildout of Nussir. It includes four key financial components, each with specific conditions and sequencing.
The first component is the US$25 million bridge loan, which is already partially drawn. The remaining US$12.5 million will be accessible after meeting additional predefined milestones, offering flexibility to match capital deployment with project development pace.
The second component is the US$20 million equity commitment. With US$5 million already completed, an additional US$15 million may be deployed under a non-binding letter of intent with Oaktree and Hartree. This equity infusion would be capped to ensure that the lenders do not exceed a combined 19.9% ownership threshold, preserving the company’s capital structure and public float.
The third component is a US$50 million senior secured term loan. Unlike the bridge loan, this facility is intended to fund the bulk of construction activities. It is non-dilutive and contingent on final investment decision milestones, including the completion of the Worley feasibility study and permitting updates.
The fourth and final element is a US$70 million redeemable precious metals stream agreement. This production-linked financing tool will also be triggered post-feasibility and will serve as a cornerstone of the company’s long-term capital strategy, offering a cost-effective alternative to equity issuance or high-yield debt.
Why are Hartree and Oaktree targeting upstream critical mineral assets like Nussir?
Hartree Partners and Oaktree Capital Management are among the most prominent institutional players targeting energy transition-linked commodities. Both firms have a history of allocating capital to upstream infrastructure and resource assets, particularly those with strong project fundamentals and long-duration cash flow potential.
Hartree’s Mine Finance & Investments division, in particular, serves as a strategic capital provider to mining ventures worldwide. The firm’s interest in the Nussir project reflects a broader trend of capital rotation toward supply chain security in metals critical to EVs, batteries, and renewable energy infrastructure. Oaktree, with over US$209 billion in assets under management, complements this strategy with a risk-controlled, value-oriented approach that aligns well with Nussir’s advanced stage and permitting status.
Analysts view the Nussir project as an ideal target for such institutional interest due to its sediment-hosted deposit structure, infrastructure connectivity, and European location—factors that make it both technically attractive and politically secure. Moreover, copper and zinc are currently listed as critical minerals by both the United States Geological Survey (USGS) and the European Union, further enhancing the project’s strategic relevance.
How does the Nussir development fit within Blue Moon’s broader asset strategy?
Blue Moon Metals is advancing three polymetallic projects across Norway and the United States. In addition to the Nussir copper-gold-silver asset, the company controls the NSG copper-zinc-gold-silver project in Norway and the Blue Moon VMS project in California. All three are brownfield developments with access to legacy infrastructure, reducing permitting complexity and capex intensity.
The company’s strategy revolves around becoming a mid-tier critical minerals developer with exposure to both the Atlantic and North American markets. By maintaining jurisdictional diversity and focusing on scalable, high-grade assets, Blue Moon aims to position itself for future offtake agreements and downstream integration opportunities.
Furthermore, the company’s permitting success in Norway is seen as a blueprint for advancing other European copper assets that are still navigating environmental or community hurdles. With ESG considerations becoming central to institutional capital deployment, Blue Moon’s integrated development and compliance approach offers an investment narrative aligned with market expectations.
What milestones should investors watch as the company moves toward final project financing?
The next significant milestone for Blue Moon is the completion and publication of the Worley feasibility study by February 2026. This will play a critical role in enabling the US$50 million senior term loan and the US$70 million streaming agreement, both of which are expected to fund the construction phase.
Investors will also monitor progress on drawing the second tranche of the bridge loan, the final approval of the US$5 million equity placement by the TSX Venture Exchange, and the potential closing of the additional US$15 million equity under the Oaktree-Hartree agreement. These events will shape not only capital availability but also market confidence in the company’s execution capabilities.
Legal advisory support for the transaction includes Bennett Jones LLP for Blue Moon Metals and Torys LLP for the lending consortium. Regulatory approvals and documentation updates are anticipated over the coming months.
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