EQ Resources (EQR) and Oaktree Capital Management have satisfied the necessary conditions involved in EQR’s acquisition of European tungsten producer Salora S.L.U.
The parties were awaiting change of control approval from a Spanish bank that provides Salora with banking facilities. A formal confirmation of such approval should arrive shortly.
“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.”
In August 2023, EQR announced it would acquire 100 per cent interest in Salora from Oaktree to help strengthen EQR’s presence in the global tungsten market. Oaktree would receive a $25 million EQR share placement at $0.09 per share as part of the transaction.
Once the parties have received formal confirmation of the change of control approval, they will move to close the transaction and issue the shares to Oaktree.
“The company … notes that the subscription proceeds of $25 million have been paid and received in accordance with the subscription agreement,” EQR said.
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.
