Blue Moon Metals Inc. – Recent Corporate Developments and Market Outlook

Blue Moon Metals Inc. (MOON:CA) has entered the spotlight on 9 January 2026 following a series of interconnected events that reshape the company’s royalty structure, shareholding profile, and analyst expectations. The company, a mineral‑exploration outfit based in Vancouver and listed on the TSX Venture Exchange, specializes in metals and mining exploration services for clients across Canada and the United States.

1. Transfer of a 0.5 % Net Smelter Royalty on the Tillex Property

On 9 January 2026, Metals Creek Resources Corp. (TSXV: MEK, FSE: M1C1) announced the acquisition of a 0.5 % Net Smelter Royalty (NSR) on the Tillex property located in Currie Township, approximately 65 km east of Timmins, Ontario. The royalty was transferred from Blue Moon Metals, which had previously held it as part of an arrangement dating back to a November 29, 2008 purchase agreement. In exchange for the NSR, Blue Moon received 50,000 common shares of Metals Creek. The transaction is contingent upon approval from the TSX Venture Exchange.

This exchange reflects the long‑standing relationship between the two companies and underscores Blue Moon’s strategy of monetising non‑core royalty interests to streamline its asset base. By relinquishing the 0.5 % NSR, Blue Moon reduces future royalty obligations on the Tillex property, potentially improving cash‑flow forecasts for the asset.

2. Analyst Upgrade: Scotiabank’s Bullish Forecast

Shortly after the royalty transfer, Scotiabank raised its price target for Blue Moon from $6.00 to $7.50 per share, signalling a 40 % upside potential relative to the current market price of $5.35 (as of 7 January 2026). The upgrade is premised on “improved valuation assumptions tied to stronger…” (the source truncates the full rationale), suggesting that the bank now sees enhanced value in Blue Moon’s remaining exploration portfolio and its ability to generate future revenue streams.

The market reaction to the analyst upgrade has already been reflected in the stock’s 52‑week high of $5.61, reached on 6 January 2026, and a 52‑week low of $1.98 on 2 April 2025. The modest positive swing in the stock price indicates that investors are beginning to price in the potential upside highlighted by Scotiabank.

3. Market Context and Company Fundamentals

Blue Moon’s market capitalization sits at CAD 446 390 000, and the company’s price‑to‑earnings ratio is currently negative at –10.68, reflecting the typical valuation profile of exploration‑stage firms that have yet to generate sustainable earnings. The share price volatility over the past year, moving between CAD 1.98 and CAD 5.61, underscores the speculative nature of the company’s business model.

With the recent transfer of the Tillex NSR and the bullish analyst outlook, Blue Moon is positioned to potentially reduce future royalty commitments while attracting new capital at a more favorable valuation. The issuance of 50,000 Metals Creek shares to Blue Moon also introduces a new cross‑ownership dynamic, which could lead to future cooperation or joint development opportunities between the two entities.

4. Outlook

The combination of a streamlined royalty profile, a favorable analyst forecast, and the company’s ongoing exploration activities in both the United States and Canada suggests that Blue Moon Metals may be entering a more attractive phase for investors. Nonetheless, the inherent risks of mineral exploration—such as regulatory approvals, technical challenges, and commodity price swings—remain significant considerations.

Stakeholders will likely monitor the TSXV approval process for the NSR transfer closely, as well as any further updates from Blue Moon regarding its exploration milestones and potential new asset acquisitions. If the company can capitalize on the positive sentiment reflected in Scotiabank’s upgraded target, it may experience a sustained upward trajectory in its share price, provided the underlying operational and financial fundamentals support such growth.