Mentioned:
MOON -10.92% TECK -8.35%

A publicly traded mining company in Canada has a new ambition: producing gallium in America.

What’s happening:

  • Blue Moon Metals (TSXV: MOON) has entered into a deal with a subsidiary of Teck Resources (NYSE: TECK) to purchase their Apex gallium-germanium mine located in Utah

By the numbers:‍

  • Blue Moon Metals will issue approximately 7M common shares to Teck Resources as part of the acquisition
  • Teck Resources will own roughly 8% of Blue Moon Metals following the closing of the deal as well as a 0.5% net smelter return royalty on the production of the Apex mine

Why it matters:‍

  • The Apex mine owned by Teck Resources was previously in commercial production and was the primary supply source of both gallium and germanium in the United States

Going deeper:‍

  • Blue Moon Metals has publicly stated they plan to immediately begin renewing the permits at the Apex mine and advancing technical studies as well as metallurgical testing
  • The Apex mine also historically produced copper and silver in addition to gallium and germanium

The intrigue:‍

  • There are currently no large scale gallium mines in production in the United States of America

‍