EQ Resources (ASX:EQR) has entered a binding agreement with Sunshine Metals (ASX:SHN) to acquire the latter’s Hodgkinson Project in Queensland.
The acquisition involves total cash consideration of $250,000, comprising $100,000 cash payable to Sunshine on execution of the sale and purchase agreement and a further $150,000 payable on completion.
Through this agreement, EQR will acquire a 100% interest in six exploration permits for minerals adjacent to its Mt Carbine tungsten operation. These include EPM 18171, EPM 19809, EPM 25139, EPM 27539, EPM 27574, and EPM 27575.
EQR Managing Director Craig Bradshaw says the company is grateful to Sunshine for its “constructive engagement on the proposed transaction and for recognising the strategic fit” between this project and EQR’s broader regional development strategy.
“The proposed acquisition of the Hodgkinson tenement package is a disciplined regional step around our existing operating base at Mt Carbine,” Bradshaw says.
“Our priority remains clear: to maximise value from our established tungsten operations and build a stronger Western tungsten platform.
“Mt Carbine’s expanded processing capacity gives us the ability to think regionally.
“Hodgkinson, together with Wolfram Camp and other opportunities in the broader district, has the potential to form part of a hub-and-spoke model that positions Mt Carbine as the central processing hub within a regional tungsten basin.”
EQ Resources is a global tungsten mining company focused on sustainable mining and processing practices, with assets in North Queensland and the Salamanca Province in Spain.
Sunshine after an acquisition rainbow
Following completion of the divestment, Sunshine will focus its funds and efforts on refurbishment, construction, and final permitting for the Mt Moss Gold Plant in Queensland, while progressing towards production at Liontown.
Sunshine is targeting gold production at the Liontown Project in mid-2027. The company is focused on exploration across the Sybil Project’s epithermal field.
Managing Director Damien Keys says the divestment is a “win-win for both businesses”.
“Sunshine will maintain a focus on Ravenswood Consolidated, while Hodgkinson is progressed by the capable team at EQ Resources,” Keys says.
“The core focus region for Sunshine is closer to the Townsville head office at Ravenswood Consolidated and Mt Moss/Sybil.
“Current works are focusing on engineering design and pre-construction works associated with the Mt Moss gold plant, resource and mining study updates at Liontown, and exploration work at the Sybil epithermal gold targets.”
Sunshine Metals recently completed a $7.69 million share purchase plan following the company’s $19 million share placement, as reported by Mining.com.au.
Funds received from both offerings will be used for the cash consideration for the Mt Moss Operation acquisition, along with the Liontown mine start-up, exploration, resource development, and general working capital.
Sunshine Metals is a gold and base metals mining company with assets in Queensland.
Write to Maddison Elliott at Mining.com.au
Images: Sunshine Metals
