EQ Resources (ASX:EQR) has announced the completion of all transaction documents with Traxys Europe for a three-year, €15 million prepayment facility, alongside a five-year commercial agreement for the sale of 3,500 tonnes of tungsten trioxide from the Barruecopardo Mine in Spain at the prevailing spot price of delivery.
The total value of this commercial agreement is approximately $678 million, based on current spot prices, referencing the industry standard Fastmarket Tungsten APT 88.5% tungsten trioxide CIF Rotterdam low price.
Proceeds from the prepayment facility will be used to refinance the €15 million of existing debt facilities owed by the company’s subsidiary Salaro S.L.U. An additional €5 of debt facilities owed by Salaro will be repaid from cash generated from the Barruecopardo Mine in the quarter ending 31 December 2025.
Managing Director Craig Bradshaw says that “it is good to finally get this piece of work closed, enabling our debt profile to be matched with our production profile over a reasonable term and cost”.
“We look forward to having Traxys as a business partner while we strengthen EQR’s mining platform to ensure we are a reliable, long term supplier of tungsten for our customers who are in desperate need of our material given the global geopolitical challenges.”
EQ Resources is a global tungsten mining company, with a focus on sustainable mining and processing. The company is focused on expanding its assets at Mt Carbine in North Queensland, Australia and at Barruecopardo in the Salamanca Province in Spain.
Write to Amy Rotman at Mining.com.au
Images: EQ Resources
