Debt Reduction and Capital Raise Position EQ Resources for Market Challenges
EQ Resources Limited has successfully raised $34 million through a share placement, aiming to accelerate development at its Carbine Vein project and strengthen its balance sheet amid robust tungsten market conditions.
- Completed $34 million equity raising at $0.05 per share
- Oaktree to convert $7.25 million loan to equity at same price
- Funds allocated to Carbine Vein advancement, debt repayment, and working capital
- Strong institutional support amid rising tungsten demand
- Operational focus on ramping production at Australian and Spanish mines
Capital Raise to Fuel Growth and Stability
EQ Resources Limited (ASX – EQR), a global tungsten producer with operations in Australia and Spain, has announced a successful $34 million equity raising via a share placement priced at five cents per share. This capital injection is set to underpin the company’s strategic priorities, including advancing the high-grade Carbine Vein at Mt Iolanthe and shoring up its financial position through debt reduction and working capital enhancement.
The placement attracted strong support from institutional and sophisticated investors, reflecting confidence in EQ Resources’ growth trajectory and the favourable outlook for tungsten, a critical mineral in global supply chains. The company also revealed that Oaktree, its major financier, has agreed to convert $7.25 million of its pre-royalty loan into equity at the same share price, pending shareholder approval. This move will further reduce debt and align interests between the company and its key stakeholders.
Operational Momentum and Market Tailwinds
Operationally, EQ Resources is focused on ramping up production at its flagship Carbine Vein and Mt Iolanthe projects in Queensland, Australia, alongside its Barruecopardo mine in Spain. The company reported record production volumes in October 2025 and is targeting further growth in 2026, leveraging strong tungsten market conditions driven by increased demand in industrial and technology sectors.
CEO Craig Bradshaw highlighted the significance of the capital raise in strengthening the company’s balance sheet and enabling access to higher-grade ore zones through drilling and blasting activities. The repayment of outstanding payables and convertible notes, as well as partial repayment of a Spanish loan facility, will reduce financial risk and improve liquidity.
Strategic Royalty Agreement and Loan Termination
In a related development, EQ Resources has agreed to terminate a US$7.5 million pre-royalty loan with Oaktree following the execution of a 2.5% net smelter royalty agreement on the Saloro operation. This arrangement, announced earlier in August 2025, provides the company with a clear path to streamline its capital structure while maintaining operational flexibility.
Looking ahead, the company plans to hold a shareholder meeting in early 2026 to approve the additional share issuance related to the loan conversion. The new shares issued under the placement will rank equally with existing shares, ensuring parity among shareholders.
With a strengthened financial foundation and operational momentum, EQ Resources is well-positioned to capitalise on the growing demand for tungsten, a critical mineral essential to the new economy.
Bottom Line?
EQ Resources’ capital raise and debt conversion set the stage for a pivotal growth phase amid a tightening tungsten market.
Questions in the middle?
- Will shareholder approval for the loan conversion proceed smoothly and on schedule?
- How quickly can EQ Resources ramp production at Carbine Vein to meet 2026 targets?
- What impact will the royalty agreement have on long-term cash flow and profitability?
