EQ Resources’ (ASX:EGR) wholly owned subsidiary European Tungsten has secured approval from the Spanish Ministerial Council to acquire tungsten mining company Saloro.
Saloro is reportedly the owner of one of the most ‘significant’ tungsten mines in Europe.
The approvals are a ‘major’ step forward in the joining of the Mt Carbine Tungsten Mine and Saloro’s Barruecopardo tungsten mine in northwest Spain, under the ownership of EQ.
Further conditions precedent from global private equity manager Oaktree Capital, are being worked through by EQ and Oaktree, to formally close the transaction within the coming days.
As this news service previously reported, Oaktree will subscribe 278 million new ordinary shares in EQ at $0.09 per share, amounting to an investment of $25 million.
Oaktree will then become a ‘substantial’ shareholder in EQ with a holding of 15.86%.
EQ Resources Chief Executive Officer (CEO) Kevin MacNeill says the company is pleased with improving metallurgical recoveries through the early stage processes, alongside addressing optimisation of the Barruecopardo processing plant.
“With the second x-ray transmission (XRT) sorter to be delivered mid of December to site, Barruecopardo shall see further upside in both feed grades to the process plant and overall tungsten recovery.
“With the second x-ray transmission (XRT) sorter to be delivered mid of December to site, Barruecopardo shall see further upside in both feed grades to the process plant and overall tungsten recovery“
The geology teams are also making good progress related to the update of the Barruecopardo resource and reserve statements, as we needed to align them with the latest JORC Code.
Both teams, in Spain and Australia, have gained significant knowledge through years of exploration and drilling at both sites, but also from ongoing mine production. We want to ensure all those findings are reflected in the updates.”
Saloro is a Spanish tungsten mining company based in western Spain.
EQ Resources is an ASX-listed company focused on transforming its tungsten assets at Mt Carbine in North Queensland. The company also holds gold exploration licences in New South Wales.
As of 30 September 2023, the company had $3.749 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: EQ Resources
