Blue Moon Announces Agreement To Buyback 2% NSR

Rhea-AI Summary

Blue Moon Zinc Corp. has agreed to buy back a 2% Net Smelter Return on its Blue Moon project for US$22,000, enhancing ownership consolidation. CEO Patrick McGrath indicated that this buyback is accretive to shareholders, especially with rising commodity prices for zinc, gold, silver, and copper. The Blue Moon polymetallic deposit boasts 7.8 million inferred tons at 8.07% zinc equivalent, including 771 million pounds of zinc and 300,000 ounces of gold. Ongoing discussions with Platina Resource Limited on the future of their joint venture continue as the Stage One earn-in deadline approaches in February 2021.

Positive

• Buyback enhances ownership consolidation of the Blue Moon project.
• Buyback price of US$22,000 considered accretive to shareholders.
• Rising commodity prices support the value of the NSR buyback.

Negative

• Potential uncertainties related to future exploration and market conditions.

VANCOUVER, BC / ACCESSWIRE / September 2, 2020 / Blue Moon Zinc Corp. (TSXV:MOON;OTCPINK:BMOOF) (the "Company") is pleased to announce that it has agreed to buyback a 2% Net Smelter Return ("NSR") on the Company's Blue Moon polymetallic project. The NSRs were originally issued to the two founding prospectors of the project. The NSR holders have agreed to accept US$22,000 cash in return for the buyback.

Patrick McGrath, Chief Executive Officer, stated, "The buyback of the NSRs further consolidates the ownership of the Blue Moon project. We believe the purchase price is very accretive to Blue Moon shareholders. The Blue Moon project is polymetallic with material amounts of zinc, gold, silver, and copper. The aforementioned commodity prices have increased materially in recent months, which further validates the value proposition on the NSR buyback."

The Company and Platina Resource Limited ("Platina") continue to have discussions on the future of the Blue Moon Joint Venture. The Stage One earn-in deadline for the work commitment and cash payment is February 2021.

About Blue Moon

Blue Moon (TSX.V:MOON; OTCPINK:BMOOF) is currently advancing its Blue Moon polymetallic deposit, which contains zinc, gold, silver, and copper, in partnership with Platina. The deposit is open at depth and along strike. The Blue Moon 43-101 Mineral Resource includes 7.8 million inferred tons at 8.07% zinc equivalent, which includes 771 million pounds of 4.95% zinc, 300,000 ounces of gold at 0.04 oz/t, 71 million pounds of 0.46% copper, and 10 million ounces of silver at 1.33 oz/t. The 43-101 Mineral Resource report dated November 14, 2018 was authored by Gary Giroux, P. Eng., and Lawrence O'Connor, a QP, and entitled "Resource Estimate for the Blue Moon Massive Sulphide Occurrence." The 43-101 and related press release with details on the resource are available on the company's website and were filed on www.sedar.com on November 20, 2018. The Company also holds 100% of the Yava polymetallic project in Nunavut that is in the same volcanic lithologies and south of Glencore's Hackett River deposit. More information is available on the company's web site (www.bluemoonmining.com).

Qualified Persons

John McClintock, P. Eng, a Director of the Company, is a qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis for this press release.

For more information, please contact:

Patrick McGrath, CEO
1-832-499-6009
pmcgrath@bluemoonmining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Resource estimates included in this news release are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions set forth in the relevant technical report, and otherwise, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for zinc, the results of future exploration, uncertainties related to the ability to obtain necessary permits, licenses, and titles, changes in government policies regarding mining, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

The securities referenced in this news release have not and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

SOURCE: Blue Moon Resources

View source version on accesswire.com:
https://www.accesswire.com/604358/Blue-Moon-Announces-Agreement-To-Buyback-2-NSR

FAQ

What is the purpose of Blue Moon Zinc's NSR buyback?

The buyback aims to consolidate ownership of the Blue Moon project and is considered accretive to shareholders.

How much is Blue Moon Zinc paying for the NSR buyback?

Blue Moon Zinc is paying US$22,000 for the buyback of a 2% Net Smelter Return.

What impact could the NSR buyback have on Blue Moon Zinc's stock price?

The buyback could positively influence stock price by enhancing shareholder value and reducing royalty expenses.

What resources does the Blue Moon project contain?

The Blue Moon project contains significant amounts of zinc, gold, silver, and copper.

What are the details of the Blue Moon Joint Venture with Platina Resource Limited?

Discussions on the future of the Blue Moon Joint Venture are ongoing, with a Stage One earn-in deadline set for February 2021.