Dr Andrew Forrest Acquires 16.8% Stake in EQ Resources

Strategic Ownership Shift in EQ Resources

Dr Andrew Forrest AO, via his investment vehicle Wonongarra Pty Ltd, has agreed to acquire a 16.8% stake in EQ Resources Ltd (ASX:EQR) from Oaktree Capital Management. The deal involves approximately 862 million fully paid ordinary shares and 35.5 million options, representing a substantial ownership transfer in the global tungsten producer.

This transaction signals a notable shift from a financial investor to a mining industry stalwart, underscoring confidence in EQ Resources’ strategic position as a key supplier of tungsten to Western supply chains. Oaktree has been a cornerstone investor since 2023, backing the company through its acquisition of the Barruecopardo mine in Spain and the expansion of Mt Carbine in North Queensland, which together have established EQ Resources as the largest western tungsten producer.

Operational Continuity and Governance Implications

The transaction is purely at the shareholder level and will not affect EQ Resources’ day-to-day operations, management, or strategic direction. However, the transfer includes certain shareholder rights, notably the right to appoint a director to the board, which will pass to Wonongarra. This governance change could influence the company’s oversight as it enters its next growth phase.

Craig Bradshaw, Managing Director of EQ Resources, expressed gratitude to Oaktree for their support during a pivotal growth period and welcomed Dr Forrest’s involvement as a strong endorsement of the company’s future. Bradshaw highlighted the transition as a vote of confidence in EQ Resources’ people and growth strategy across its Australian and Spanish operations.

Industry Perspective and Growth Prospects

Federico Alvarez-Demalde from Oaktree reflected positively on the partnership, noting the company’s successful build of a leading Western tungsten supply base. Meanwhile, Dr Forrest emphasised the critical role tungsten plays in modern infrastructure and technology, pointing to its concentrated global supply and the importance of supporting Australian producers.

EQ Resources is advancing expansion projects at Mt Carbine and Barruecopardo, aiming to increase tungsten output amid a tightening global supply environment. The company’s focus on sustainable mining practices and advanced processing technology positions it well to capitalise on rising demand for critical minerals.

This ownership change comes on the heels of EQ Resources’ recent operational milestones, including record production and tenure expansion, reflecting a company poised for growth under new cornerstone ownership.