ACG Metals (LON: ACG) plans to become a major European copper producer through a $220-million acquisition of Blue Moon Metals’ (TSX-V: MOON) Norwegian assets, combining mining operations in the Arctic and southern Türkiye.
The London-listed company said Tuesday it would acquire Blue Moon Norway AS, including a 94.52% stake in the Nussir copper project in northern Norway. The all-share deal would add a second major asset alongside ACG’s Gediktepe mine in Türkiye, with combined annual production forecast to exceed 50,000 tonnes of copper equivalent by 2029.
“The combination of the Gediktepe operations in Türkiye and Blue Moon’s Norwegian assets is a transformational transaction that creates a fast-growing European copper champion with industry-leading free cash flow margins,” ACG chairman and CEO Artem Volynets said in a statement.
The acquisition would give ACG a foothold in Europe’s growing critical minerals supply chain as Western governments seek to reduce dependence on foreign sources of strategic metals. The European Union has designated Nussir a strategic project under its Critical Raw Materials Act, potentially strengthening its role in regional copper supply.
ACG must still secure financing to complete Nussir, bring Gediktepe to full commercial production and successfully ramp up both operations to meet its growth targets.
Arctic expansion
Nussir, near Hammerfest in Norway’s northern Finnmark region, is fully permitted and under construction, with first copper concentrate expected in the first half of 2028.
The underground operation is designed to process about 2 million tonnes of ore annually, producing copper with gold and silver by-products. A feasibility study outlines a 13-year mine life extending to 2041.
The deposit contains measured and indicated resources of 28.72 million tonnes grading 1.02% copper, including proven and probable reserves of 24.98 million tonnes at 0.81% copper. Inferred resources add 31.99 million tonnes grading 1.01% copper.
ACG forecasts average annual production of 18,400 tonnes of copper equivalent between 2029 and 2033 on a 100% ownership basis. Its initial attributable output would be about 17,400 tonnes, although the company aims to acquire the remaining minority interest within 12 months of closing.
The Norwegian portfolio also includes the nearby Ulveryggen deposit and the Sulitjelma copper-zinc district in Nordland, providing additional exploration and development opportunities.
Sulitjelma hosts inferred resources of 17.07 million tonnes grading 1.06% copper and 0.21% zinc. A proposed combination with neighbouring exploration licences could give ACG about 30% of an enlarged development company rather than outright ownership of the existing subsidiary.
Meanwhile, Gediktepe is targeting full commercial production in the first quarter of 2027, followed by an enriched-ore processing project scheduled to begin production in the third quarter.
ACG is also evaluating satellite deposits, including Keşkek, whose acquisition remains subject to regulatory approval.
The company plans to apply its Turkish construction and operating experience at Nussir, sharing technical expertise, procurement and corporate services between the two operations.
Norway’s government has previously backed Nussir because of its potential contribution to European copper supplies and regional employment. ACG intends to retain Blue Moon Norway’s workforce and continue consultations with local communities, Sámi representatives and reindeer-herding stakeholders.
Transaction goals
The transaction values Blue Moon Norway at about 59% of its $375-million broker consensus net asset value, a discount ACG considers an attractive entry point into a permitted European copper development.
ACG estimates that $84 million of Nussir’s initial capital expenditure will have been spent by completion, leaving $126 million to fund. The company is evaluating financing proposals that could cover the outstanding costs, potentially through refinancing existing Nordic bonds.
If both mines achieve their development targets, ACG projects average annual asset-level earnings before interest, taxes, depreciation and amortization of $370 million between 2029 and 2033.
Combined asset-level free cash flow could average $267 million annually during that period, based on consensus commodity prices and the full projected performance of Nussir.
ACG expects the acquisition to increase net asset value per share immediately, before accounting for potential operating synergies.
The company is also pursuing a North American stock exchange listing within 12 months of closing to broaden its institutional and retail investor base.
ACG expects to complete the acquisition by Nov. 30, subject to shareholder and regulatory approvals. The agreement has a Dec. 15 long-stop date, leaving ACG a narrow window to secure the approvals needed to advance its European copper expansion.
Source: https://www.mining.com/acgs-220-million-blue-moon-deal-creates-european-copper-giant/
