Elmet Group Completes Blue Moon Metals Stake Purchase

The Elmet Group Co. completed a binding equity investment in Blue Moon Metals Inc. on October 16, 2026, purchasing 3,500,000 units at a price of CAD 10.00 per unit. The transaction, detailed in a Form 8-K filed with the U.S. Securities and Exchange Commission, marks the fulfillment of a binding letter agreement previously disclosed in September 2026 regarding strategic transactions tied to Blue Moon's Springer Tungsten Complex in Pershing County, Nevada.

Each unit purchased by Elmet consists of one common share of Blue Moon and one share purchase warrant. The warrants are exercisable at an initial price of CAD 10.80 per share, with an expiration date of October 16, 2029. Under applicable U.S. and Canadian securities laws, the shares and warrants are subject to transfer restrictions, prohibiting sales or trades for the benefit of Canadian residents until February 17, 2027.

The purchase agreement includes covenants by Blue Moon regarding the use of proceeds for the development of the Springer complex and related mining rights. As part of the deal, Elmet also entered into an Investor Rights Agreement that grants it specific protections against dilution. The agreement provides a Participation Right, allowing Elmet to join future equity offerings on substantially the same terms as other subscribers, provided it retains at least 40% of its initial investment.

Additionally, the Investor Rights Agreement establishes a Top-Up Right. If dilutive issuances by Blue Moon reduce Elmet's ownership percentage by at least 1.0%, Elmet may purchase additional shares to restore its prior ownership level. The price for these additional shares is set at the volume-weighted average trading price on the TSX Venture Exchange for the five trading days preceding the delivery of the top-up offer.

The strategic framework for this investment was originally outlined in a September 14, 2026 filing, which identified Blue Moon (Springer) Inc. and EQ Resources Limited as parties to a series of transactions. The current filing confirms that the equity investment and board representation components of that framework have been executed through the recent subscription and rights agreements.