Nevada has long been a tungsten province, with scheelite and huebnerite veins recognized since the mid 1860s and production surging during both World Wars to meet U.S. strategic demand. The last major tungsten mine in the state closed in 1958, after which domestic output faded and the U.S. increasingly relied on imports, a shift that now sits at the center of efforts to rebuild a home grown supply chain for a metal deemed critical to national security. For readers seeking background on how tungsten mining shaped Nevada’s industrial past and why the metal is back in focus, a recent VBNGtv article offers an overview of the Nevada tungsten story, tracing the arc from early discoveries to modern revival attempts. That history frames the latest push to bring the Springer Tungsten Complex near Imlay back into production, this time with fresh capital, permitting progress, and a processing plan aimed at U.S. end users.
The transaction brings together Blue Moon Metals Inc. (NASDAQ: BMM, TSXV: MOON), The Elmet Group Co. (NASDAQ: ELMT), and EQ Resources Limited (ASX: EQR) in a binding letter agreement dated Friday to invest between US$150 million and US$175 million into Springer. The centerpiece is a joint venture entity that will own and operate the site’s ammonium paratungstate, or APT, plant, while Blue Moon retains ownership of the mine and mill. Elmet’s total commitment is approximately US$150 million, split among a US$50 million tungsten prepayment facility to Blue Moon, a US$25 million equity subscription in Blue Moon, and a US$75 million capital injection into the APT plant joint venture, with an additional US$25 million set aside for standby requirements if needed to place the APT plant back in production.
Springer itself is a historic U.S. tungsten producer, with open pit and underground mines, a 1,200 ton per day mill, and an APT plant capable of potentially producing up to 4,000 tons per year of ammonium paratungstate. The facility sits largely on fee lands, has access to water, electricity, natural gas, and tailings capacity, and is a few miles from the Union Pacific rail line and Interstate 80. On August 20, 2026 the project received approval of its bonding requirements from the State of Nevada to start construction and redevelopment, and management has indicated the mine and mill are expected to return to production in the fourth quarter of 2027, with the APT plant restart targeted for the second half of 2028. That timeline, if achieved, would mark the first material tungsten concentrate production in North America in years and add a new source of APT for the U.S. market.
Why tungsten matters here is straightforward. The metal is essential for hard metals and carbides used in cutting tools, mining bits, and wear parts, and it also appears in aerospace components, defense applications, and certain semiconductor and energy equipment. China controls about 80% of global tungsten supply and nearly 90% of processing capacity, a concentration that U.S. officials now view as a supply chain vulnerability for critical industries and defense contractors. The Transactions are described as part of Elmet’s broader Landmark Initiative with the U.S. Department of War to secure America’s tungsten supply chain, with the Department supportive in advancing the deal and having completed a NEPA review of Springer. Earlier on the same day, the Department of War announced a US$450 million investment into Elmet, of which US$150 million has been designated as use of proceeds for the Springer Transactions.
The mechanics of the joint venture and offtake arrangements set the stage for how material will flow through the site. Post investment, equity ownership in the APT plant joint venture is allocated as Elmet 70%, Blue Moon 20%, and EQ 10%, with Elmet operating the plant. During the first five years, the joint venture will allocate up to 75% of input volume to Springer concentrate annually and 25% to EQ concentrate, subject to a cap of 1,000 tons of production capacity per year for EQ. After year five, Blue Moon is granted a proportional most favored nation right to 90% of the APT plant capacity, with EQ at 10%, and the joint venture will hold a right to 100% offtake of Springer concentrate so long as it has capacity to process it. Repayment of the US$50 million prepayment facility is structured as a 25% credit against sales of Springer concentrate, and the equity subscription to Blue Moon is priced at C$10.00 per unit, representing a 31.8% premium to the closing price on September 11.
What comes next is a sequence of approvals and milestones that will determine how quickly capital moves and construction advances. Completion of the Transactions is subject to acceptable due diligence results for non equity components, all requisite approvals of the TSXV and other regulatory authorities, and execution of definitive agreements. Within 45 days, Elmet is expected to close on a US$50 million investment in Blue Moon’s U.S. affiliates, half as the equity subscription and half as the first tranche of the prepayment facility. Operational catalysts include completion of construction milestones tied to the second tranche of funding, ore sorting test work at the mill using EQ’s proprietary technology, and progress on rail load out infrastructure following Blue Moon’s recent acquisition of additional water rights and land to access the Union Pacific rail line. Together, the history of tungsten mining in Nevada and the current capital, permitting, and processing plan at Springer frame the project as a potential anchor for a renewed domestic supply chain.
