Wonongarra, an investment vehicle wholly owned by Dr Andrew Forrest AO, is set to acquire Oaktree Capital Management’s entire 16.8% shareholding in tungsten producer EQ Resources (ASX:EQR).
Oaktree’s stake comprises 862.13 million fully paid ordinary shares and 35.56 million options.
The transaction represents a change in cornerstone ownership for EQR, which operates the Mt Carbine tungsten mine in North Queensland and the Barruecopardo tungsten mine in Spain.
EQR stresses the transition occurs at the shareholder level and will not impact the company’s strategy, operations, management, or employees. However, certain shareholder rights — including the right to appoint a director to the board — will transfer.
Managing Director Craig Bradshaw says Forrest’s investment is “a strong endorsement for EQ Resources”.
“To see the ownership baton passed from a financial investor to a stalwart of the Australian mining industry with a proven track record of developing and growing assets […] is a great vote of confidence in EQ Resources, our people, and the growth strategy we are executing across our operations in Australia and Spain,” he adds.
Bradshaw also thanks Oaktree for their support over the years.
“Oaktree backed our vision at a pivotal time, and their partnership has been instrumental in establishing EQR as the leading western tungsten producer.”
Forrest says the investment backs Australian production, jobs, and expertise at a time when critical mineral supply chains have become increasingly fragile.
“Tungsten is essential to the machines that build our homes, hospitals, cities, and modern-day energy systems, as well as the semiconductors in every phone and computer. Yet global supply is remarkably concentrated,” Dr Forrest mentions.
“We are proud to become a long-term shareholder in a company that is de-risking its operations, ramping up production, and beginning to generate real cash flow.
“We look forward to seeing the business continue to grow.”
EQ Resources is a global tungsten mining company focused on its assets in Australia and Spain.
Write to Paula Fabe at Mining.com.au
Images: EQ Resources
