Blue Moon Metals (MOON.V, BMM) said Friday that its Nye Sulitjelma Gruver AS (NSG) subsidiary entered into a binding share-purchase agreement with VMS Explorations AS, a wholly owned subsidiary of Luxembourg-based Alpha Future Funds, to combine the two subsidiaries into a single entity.
Under the agreement, VMS will acquire 100% of the shares in NSG for US$15 million payable in new shares of VMS, giving Blue Moon a 30% holding in the combined company. Nearly 1,285 shares of VMS will be issued to Blue Moon, at a deemed price of US$11,666.67 per share.
Combining NSG and VMS is expected to allow for an integrated development opportunity, prioritizing mining of targeted high-grade zones and centralized haulage, and processing to strengthen project economics and streamline advancement toward production, Blue Moon said in a statement.
Completion of the acquisition is subject to satisfaction of certain conditions, including raising of a minimum of C$10 million in new capital and listing of VMS on a recognized stock exchange within 18 months of closing of the transaction.
The acquisition is expected to close on or about November 30, 2026.
Blue Moon's shares closed up C$0.30 to C$8.32 on TSX Venture Exchange on Friday.