EQ Resources Raises $22.5 Million Through Institutional Placement

Highlights:

• EQ Resources Limited has obtained firm commitments to raise $22.5 million before costs through a share placement.
• The capital raise will involve the issue of 703.125 million new fully paid ordinary shares.
• EQR’s decision to raise capital at a time when tungsten prices are near record highs provides the company with a stronger financial platform.

Successful Funding Round

EQ Resources Limited (ASX: EQR), an international tungsten producer with mining projects in both Australia and Spain, has obtained firm commitments to raise $22.5 million before costs through a share placement. At the time of writing, the shares were offered at $0.032 each, reflecting an 11.3% discount compared to the company’s 15-day volume-weighted average price (VWAP) of $0.036.The offering attracted strong participation from new and existing institutional as well as sophisticated investors, both domestic and international.

Details of the Placement

The capital raise will involve the issue of 703.125 million new fully paid ordinary shares. The placement will be structured in two tranches:

• Tranche 1: 570.245 million shares will be issued under the company’s available placement capacity, with settlement expected on 8 September 2025.
• Tranche 2: 132.879 million shares will be issued to EQR’s largest shareholder, Oaktree Capital Management L.P., subject to approval at an Extraordinary General Meeting in October 2025.

Oaktree’s participation in the raise is valued at approximately A$4.25 million, which will also reduce part of the pre-royalty loan advanced earlier in the year.

Strategic Allocation of Funds

Proceeds from this placement will be directed towards advancing production and growth initiatives at Mt Carbine, strengthening the balance sheet by managing debt and creditors, as well as covering working capital and placement costs. The funding is expected to accelerate operational improvements, including ongoing expansion and higher-grade ore access.

Enhancing Financial Position

EQR’s decision to raise capital at a time when tungsten prices are near record highs provides the company with a stronger financial platform. With robust institutional backing and continued support from its major shareholder, the placement lays a solid foundation for future growth and operational expansion.

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