A push to rebuild domestic tungsten supplies is putting ELMT and BMM in focus, with Elmet securing $450 million in government investment and a DLA contract worth up to $2 billion.
- Elmet will receive a $450 million committed investment from the U.S. Department of War, with more than $165 million expected to support its U.S. operations and additional funding for mining and processing investments.
- Elmet, Blue Moon Metals and EQ Resources announced a $150 million-$175 million investment package for the Springer Tungsten Complex.
- Elmet is expected to own 70% of the Springer APT plant JV, while Blue Moon will retain ownership and operation of the Springer mine and mill.
The Elmet Group (ELMT) shares jumped about 48% in premarket trading Monday, while Blue Moon Metals (BMM) gained more than 21%, after a series of agreements involving U.S. government funding, tungsten stockpiling and the redevelopment of Blue Moon’s Springer Tungsten Complex in Nevada.
Elmet announced a $450 million committed investment from the U.S. Department of War to expand tungsten mining, processing and manufacturing capacity. Separately, Elmet Technologies received a Defense Logistics Agency contract with a ceiling of up to $2 billion to supply tungsten materials for the U.S. National Defense Stockpile.
Blue Moon, Elmet and EQ Resources also announced binding terms for a $150 million-$175 million investment package involving the Springer Tungsten Complex.
$450M U.S. Investment Boost
The Elmet Group said the U.S. Department of War has agreed to invest $450 million in the company. The investment will be funded through an initial $200 million drawdown at closing, followed by additional drawdowns.
Elmet said more than $165 million of the investment is expected to go toward operations in Maine, Michigan and Ohio, where it manufactures and processes tungsten, molybdenum and other advanced materials and components.
The investment will also support Elmet’s mining and processing investments in the U.S., Australia and Spain. Elmet is also establishing Elmet Refining & Trading, a new division responsible for coordinating sourcing, processing and material delivery across its network.
Under the transaction, the Department of War will receive redeemable preferred equity in Elmet, warrants representing up to 19.9% of ELMT’s common stock on a post-transaction basis, and the right to appoint one independent director and one non-voting board observer.
$2B Defense Logistics Agency Contract
Separately, Elmet Technologies received an indefinite-delivery/indefinite-quantity(IDIQ) contract from the U.S. Defense Logistics Agency.
The contract has a ceiling of up to $2 billion and includes a $150 million guaranteed funded commitment.
The contract covers tungsten ores, concentrates and sodium tungstate for DLA Strategic Materials and is intended to support the rebuilding of the U.S. National Defense Stockpile.
The contract has a five-year base ordering period through Aug. 30, 2031, with an option for a two-year extension through Aug. 30, 2033.
Elmet said it does not intend to deliver stockpile material until sufficient additional supply is available through mining investments, offtake agreements and processing-capacity expansions. Deliveries are expected to be phased as new capacity comes online.
What Is The $150M-$175M Springer Tungsten Deal?
Blue Moon, Elmet and EQ Resources separately announced binding terms on Monday for a $150 million-$175 million investment package involving the Springer Tungsten Complex in Imlay, Nevada.
Under the arrangement, ELMT plans to allocate approximately $150 million to the Springer transactions.
The package also includes a $50 million tungsten prepayment facility for Blue Moon, a $25 million Elmet investment in Blue Moon, and a $75 million Elmet investment in the Springer APT plant joint venture.
The additional $25 million represents a standby commitment from Elmet and EQ Resources for requirements related to placing the Springer APT plant back into production.
Blue Moon’s announcement says $150 million of the Department of War’s $450 million investment in Elmet has been designated for these Springer transactions.
The transactions remain subject to due diligence, regulatory and exchange approvals and definitive agreements.
Elmet To Own 70% Of APT Plant JV
Following the planned $75 million investment, Elmet is expected to own 70% of the APT plant joint venture, with Blue Moon holding 20% and EQ Resources 10%, and Elmet operating the plant.
Phase 1 is targeted at 4,000 tonnes per year of capacity, where Blue Moon will retain 100% ownership and operation of the Springer mine and mill.
The mine and mill are not currently producing. Blue Moon has targeted a return to production in Q4 2027, while the APT plant is targeted to restart in the second half of 2028.
Blue Moon received regulatory approvals in August that allow construction at the Springer project to proceed.
What Are Retail Investors Saying About BMM And ELMT?
On Stocktwits, retail sentiment around ELMT was ‘bullish’ with ‘high’ message volume, while sentiment around BMM was ‘neutral’ amid ‘normal’ message volume.
Over the past year, ELMT and BMM shares have surged 15.64% and 54.97%, respectively.
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