Tungsten producer EQ Resources (EQR) and global investment manager Oaktree Capital Management have satisfied the conditions outlined in EQR’s acquisition of European tungsten producer Salora S.L.U.
In August 2023, EQR announced that it would acquire 100 per cent interest in Salora from Oaktree to help strengthen EQR’s presence in the global tungsten market. It would also receive a $25 million placement at nine cents per share.
“This is without doubt an outstanding development and a transformational acquisition for EQR that delivers a huge value opportunity for shareholders,” EQR chief executive officer Kevin MacNeill said of the deal.
“We continue building a robust growth pipeline with the addition of the Saloro operation and considering the exploration ground around the Barruecopardo mine (in Salamanca, Spain) is covering prospective historical workings.”
EQR and Oaktree have now received an informal notice of the acquisition’s final condition being satisfied, that being the change of control consent from a Spanish bank that provided Saloro with banking facilities. The bank is currently awaiting the formal confirmation of the satisfaction.
“Upon this occurring, the parties will move to formally close the transaction and issue the shares to Oaktree,” EQR said.
“The company also notes that the subscription proceeds of $25 million have been paid and received in accordance with the subscription agreement.
“However, the issuance of the shares (and formal closing of the transaction) remains subject to the receipt of formal confirmation of the satisfaction of the change of control consent from the Spanish bank.”
EQR is transforming its flagship tungsten assets at the Mount Carbine mine near Cairns in North Queensland and redeveloping the closed Wolfram Camp and Bamford Hill mines in Queensland into working mines.
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