EQ Resources (ASX:EQR) reports the Foreign Investment Review Board (FIRB) has issued a ‘no objection notification’ for the $25 million investment in EQR by funds managed by US-based Oaktree Capital Management.
The FIRB approval represents a key condition precedent under the sale and purchase agreement entered into between EQR and Oaktree.
Commenting on FIRB’s response, EQ Resources Chief Executive Officer Kevin MacNeill says: “We are pleased with the progress and having received positive feedback from FIRB. Oaktree becoming a key stakeholder of EQR, assisting us to fully materialise our strategy to become the leading tungsten concentrate producer outside of China.
We are making good progress at the Barruecopardo operations as well, improvements in the processing technologies and production output are a result of the lessons learned we had at Mt Carbine.”
FIRB’s ‘no objection notification’ and investment, says EQR, complements the approval by the Spanish Ministerial Council for EQR’s 100% owned subsidiary European Tungsten to acquire Saloro, the owner of the Barruecopardo tungsten mine, located in Castilla y León, Salamanca Province, in north-west Spain.
EQR and Oaktree are working through remaining formalities to close the transaction still ahead of year end.
EQ Resources is the 100% owner of the Mt Carbine Tungsten Mine near Cairns. It has entered into a conditional agreement to acquire 100% of the Barruecopardo Tungsten Mine in Spain.
Write to Adam Orlando at Mining.com.au
Images: EQ Resources
