Value creation journey: Oaktree snares 15 per cent of EQ Resources
EQ Resources has struck a deal that would give it a major shareholder and a Spanish-based tungsten producer.
The company said it had agreed to binding terms to buy Saloro SLU from Tungsten Mining JV, a portfolio company of funds managed by Oaktree Capital.
Oaktree would also take 278 million shares in EQ at an issue price of 9 cents, which amounted to a $25 million investment in the Queensland mining company. EQ owns the Mt Carbine tungsten mine near Cairns.
The deal would mean Oaktree would hold a 15.86 per cent stake in EQ.
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When the deal was finalised, Oaktree would also receive 78 million options at 10 cents each, which could be exercised within two years.
EQ chief executive Kevin MacNeill said it was an outstanding development and would be transformational for the company.
“We are delighted Oaktree agrees and supports the value proposition of the expanded operation across two jurisdictions through their investment in EQR at a significant premium, demonstrating commitment to the forthcoming value creation journey,” he said.
