EQ Resources (ASX:EQR) will receive increased investment from the Elmet Group (NASDAQ:ELMT), after the latter exercised its option to acquire 20 million ordinary shares in EQ Resources.
This acquisition will bring Elmet Group’s holding in EQ Resources to 23.65 million ordinary shares, after the two parties orchestrated a strategic collaboration and long-term offtake agreement.
Under this agreement, Elmet Group committed to purchase tungsten concentrate from EQ Resources’ Barruecopardo operation in Spain over a mutually renewable five-year period.
The partnership is intended to support the development of secure, reliable, and traceable tungsten supply chains for Western markets by combining EQ Resources’ mining and minerals processing capability with Elmet Group’s downstream manufacturing and critical materials expertise.
EQ Resources’ Managing Director Craig Bradshaw says Elmet’s increased investment is a ‘strong’ reflection of the company’s role in the Western tungsten supply chain.
“We welcome Elmet’s continued support as we advance our operating platform across Barruecopardo in Spain and Mt Carbine in Australia,” Bradshaw says.
Elmet Group CEO Peter Anania says the investment in EQ Resources is an “important milestone” that strengthens the company’s relationship.
“Over the last two years, we have witnessed an increased focus on the critical material supply chain, particularly in defence applications, which is why we sought out this strategic collaboration with one of the fastest-growing Western tungsten mining groups,” Anania says.
“We look forward to continuing our strategic collaboration as well as exploring additional opportunistic investments to bolster our long-term competitive positioning.”
EQ Resources is a global tungsten mining company focused on sustainable mining and processing practices, with assets in Australia and Spain.
Write to Maddison Elliott at Mining.com.au
Images: EQ Resources
