Tungsten Supply Tightens: EQ Resources’ A$4M Placement Signals Growth Ambitions

Capital Raising to Support Growth

EQ Resources Limited (ASX, EQR), a global tungsten producer with mining operations in Australia and Spain, has announced a successful placement raising A$4 million at an issue price of 3.5 cents per share. The placement attracted strong interest from institutional and sophisticated investors, reflecting confidence in the company’s growth strategy and the critical role of tungsten in the new economy.

This latest capital raise builds on earlier funding rounds in 2025, including an A$18.8 million placement in May and a A$1.8 million Share Purchase Plan in June, bringing total capital raised this year to over A$20 million. The new shares are scheduled for allotment on 11 July 2025, utilizing the company’s placement capacity under ASX Listing Rule 7.1.

Funding Expansion and Optimization at Mt Carbine

The proceeds from the placement will be directed towards expansion and optimization projects at EQ Resources’ flagship Mt Carbine tungsten mine in North Queensland. Key initiatives include waste stripping and plant upgrades aimed at enhancing production capacity and operational efficiency. These efforts are designed to strengthen the company’s balance sheet and position Mt Carbine as a reliable supplier amid tightening global tungsten markets.

Executive Chairman Oliver Kleinhempel highlighted the strategic importance of the placement, noting the company’s commitment to meeting growing global demand for tungsten. He emphasized the ongoing construction of a significant third-party sorter at Mt Carbine and the progress of waste stripping activities, both of which underpin the company’s expanded production profile.

Navigating Global Supply Challenges

Tungsten is a critical mineral with increasing geopolitical and supply chain pressures. EQ Resources’ timely capital raising and operational enhancements come as the industry faces a notable shortage of tungsten supply worldwide. By investing in its Mt Carbine asset, the company aims to capitalize on this market dynamic and secure its position as a leading supplier in the critical minerals sector.

While the announcement does not provide explicit production targets or detailed financial guidance post-expansion, the strong institutional backing and clear strategic focus suggest confidence in the company’s growth trajectory. Investors will be watching closely for updates on operational milestones and the impact of these capital works on production volumes and costs.