EQ Resources Ltd (ASX:EQR) Revises Funding Strategy for Expansion
Funding Revision Announcement
EQ Resources Ltd (EQR) has decided to discontinue its interest-bearing loan facility with Queensland Investment Corporation (QIC) for the Mt Carbine mine expansion. The agreement, which aimed to provide up to A$20 million in funding, was originally set to support critical minerals mining and battery technology development in Queensland.
Despite earlier negotiations for extensions, the company has assessed the increasing costs associated with the agreement and determined that pursuing additional amendments is not in the best interests of shareholders. Conditions precedent for the loan remained unmet as of 29 November 2024.
Strategic Developments
The decision to withdraw from the QIC agreement comes amidst positive developments for EQ Resources. The company has secured offtake and investment arrangements with Elmet Technologies LLC and Square Resources Holding Pty Ltd, which bolster its funding alternatives. Furthermore, ongoing interest from third-party consumers for additional offtake presents further financial opportunities.
CEO Kevin MacNeill stated, “EQR has decided not to accept the revised terms of an extension of the loan facility with QIC. The Board and Management are confident this decision is in the best interest of shareholders and will not negatively impact our ability to deliver growth projects at Mt Carbine.” He emphasized the advancement of operational improvements and record production levels, setting a solid foundation for expected increases in ore grades starting from March 2025.
Company Overview
EQ Resources Ltd focuses on sustainable tungsten mining practices in Australia and Spain. The company aims to enhance its operations at Mt Carbine and Barruecopardo, while exploring additional avenues within the critical minerals sector globally.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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