Canadian Company to Acquire Ownership in Two North Norwegian Mining Companies
The town of Sulitjelma is located in the eastern part of Fauske municipality in Northern Norway, close to the Swedish border. The historical mining grounds are located on the valley floor of the Sulitjelma mountains, which have high peaks and large glaciers. Approximately 530 people live in Sulitjelma. (Photo: Hilde-Gunn Bye).
Blue Moon Metals acquires all the shares in the Northern Norwegian mining companies Nye Sulitjelma Gruver and Nussir. "This is big news," says general manager Størker Bjørnstad of Nye Sulitjelma Gruver to HNN.
Canadian Blue Moon Metals and the respective North Norwegian mining companies Nye Sulitjelma Gruver (NSG) and Nussir have entered into separate binding letters of intent, under which Blue Moon has agreed to acquire all of the issued and outstanding common shares of Nussir and NSG.
According to a press release, Blue Moon Metals is acquiring a 100 percent interest in Nussir for 55.3 million USD and a 100 percent interest in NSG for 12 million USD.
"Blue Moon is excited about the copper potential of northern Norway, and the NSG Property would be the first new copper mine in the country in over 50 years," the release states.
Since 2011, the owners of Nye Sulitjelma Gruver have been working to restart mining in the copper district located in Fauske municipality in Northern Norway.
"The agreement is great news," says general manager Størker Bjørnstad in Nye Sulitjelma Gruver (NSG) when High North News speaks with him."
"This is also good news for new jobs, tax revenues, and the population in Fauske, a municipality that has struggled financially, he adds.
A new, merged company
The new agreement involves a merger between Nye Sulitjelma Mines, Nussir, and Canadian Blue Moon Metals, which owns a mine in California.
"The merger means that we are also on the ownership side of the new company, Blue Moon Metals. In other words, both NSG and Nussir in Finnmark will exist as companies. We [NSG, journ. note] own a share of approximately 12 percent in the new, merged company, which includes a total of three mines," Bjørnstad explains about the agreement.
Nye Sulitjelma Gruver (NSG) is working to restart copper mining in Sulitjelma, Northern Norway. "Europe needs minerals. When most things are to be electrified, copper will be very important," general manager Størker Bjørnstad told HNN in a former interview. (Photo: Hilde Bye / HNN).
Financing
What does this mean for the copper mine in Sulitjelma?
"For us, this means access to financing, to be able to start up. It's not exactly cheap to be doing this," Bjørnstad says.
He notes that financing as a first step will be very important for the company's plans to extend a 400-meter-long tunnel approximately 1 kilometer further into the mountain and then survey and drill in mining fields where the company has rights to extract ore.
"Access to financing already means that we can start this work next year when the formalities are in place, continues Bjørnstad.
However, NSG is still waiting for emission permits, and an operating license must eventually be secured.
"When we now access capital, we believe things will go faster. Then it will simply be up to the Norwegian authorities," he says and adds:
"If the politicians want more mining in Norway, they should get on the field and see if it is possible to make things go faster. It usually takes 15-25 years to start a new mining project. We see how much faster the opening of new mines is in Sweden."
New steps for Nussir in Finnmark
Founder and general manager Øystein Rushfeldt in Nussir has worked to start up the copper mine further north in Kvalsund, Finnmark, for over 15 years.
In connection with the new agreement, Rushfeldt tells the Norwegian newspaper Finansavisen that they have continued work to raise funding in the capital market over the past two years.
"With money in the account, we will build up the organization that will be necessary to be able to start with the physical work. It is also natural to think that it must be snow-free first. But I imagine we will begin in 2025," says Rushfeldt to the newspaper.
He further says that he is very optimistic that the issue in Blue Moon Metals will be realized without going into details.
