EQ Resources (ASX:EQR) has executed a binding term sheet with Traxys Europe for a three-year €15 million ($26.35 million) prepayment facility.
Proceeds from the financing facility will be used to refinance €15 million of the existing debt facilities owed by EQR’s 100% owned subsidiary Saloro S.L.U. Cash generated from the Barruecopardo Mine in Q4 2025, and proceeds from the recent EQR placement in December 2025 will be used to repay the remaining €5 million of debt facilities owed by Saloro S.L.U.
Execution of the definitive agreements is targeted for Q1 2026.
Managing Director Craig Bradshaw says the financing is another significant step forward as the company closes out 2025, reducing the overall Spanish debt package by €5m and converting the balance into a three-year term debt facility with a strong business partner in Traxys.
The term sheet sets out the key commercial terms for an offtake and sales arrangement with Traxys as EQR’s sales and distribution agent for its Barruecopardo Mine, comprising an initial five-year offtake for a minimum 7,000 tonnes of tungsten concentrate containing at least 3,500 tonnes of WO₃.
Pricing is referenced to the prevailing index for APT giving the commercial offtake value an estimated $400 million.
The parties have agreed to enter into definitive agreements to document the terms of the financing facility and the commercial offtake, which will be consistent with the binding provisions of the term sheet.
First drawdown of the financing facility and the commercial offtake becoming effective remain subject to satisfaction (or waiver) of the conditions precedent.
“We look forward to working with Traxys over the coming period as they market Saloro’s production and, together, support supply certainty for our global customers,” Bradshaw says.
EQR is transforming its flagship tungsten assets at Mt Carbine in North Queensland, leveraging advanced technology, historical stockpiles, and unexploited resources with the aim of being the pre-eminent tungsten producer in Australia.
It also holds gold exploration licences in New South Wales.
At its 2020 AGM, the company changed its name from Speciality Metals International to EQ Resources. ‘EQ’ is a known abbreviation for emotional quotient / emotional intelligence, which is essential for living out EQR’s underlying values to care and respect each other, embrace diversity, collaborate and be accountable.
In addition, the ‘E’ also represents a focus on environment, efficiency, and economics.
Write to Adam Orlando at Mining.com.au
Images: EQR
