Blue Moon Metals closes $5 million placement, draws $12.5 million loan

Blue Moon Metals Inc. (TSXV: MOON; OTCQX: BMOOF) completed a $5 million private placement with Oaktree Capital Management and drew an initial $12.5 million from a bridge loan facility with Oaktree and Hartree Partners.

The private placement represents the first portion of a potential $20 million equity commitment from funds managed by Oaktree and Hartree. The common shares issued are subject to a four-month hold period under Canadian securities laws.

The TSX Venture Exchange granted conditional approval for the bridge loan facility, which allows the company to draw up to $25 million in two $12.5 million installments. Blue Moon satisfied conditions for the first advance and received $12.5 million. The company issued 1,045,000 common shares to Hartree concurrent with the drawdown.

The bridge loan is secured by first-ranking liens on Blue Moon's Nussir copper-gold-silver project in Norway and its Blue Moon polymetallic project in California, along with the company's personal property.

The financing forms part of a potential $140 million investment package that includes the $25 million bridge loan, up to $20 million in equity, a $50 million senior secured term loan, and a $70 million precious metals stream agreement. The larger financing components remain subject to non-binding agreements and closing conditions.

Blue Moon plans to use proceeds for pre-construction activities at its Nussir project, including detailed engineering, procurement of equipment, underground development, and operational preparation. The company expects to complete a feasibility study for Nussir by February 2026.

Bennett Jones served as legal counsel to Blue Moon, while Torys represented Hartree and Oaktree. The equity subscription remains subject to final TSXV approval.

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