EQ Resources Raises AU$34 Million and Converts AU$7.25 Million Debt to Equity to Strengthen Tungsten Growth Strategy
Source: Kapitales Research
Highlights
EQ Resources (ASX: EQR) secures AU$34 million via a strongly supported placement at AU$0.05 per share.
Oaktree agrees to convert its remaining AU$7.25 million pre-royalty loan into equity at the same issue price.
Funds will support Mt Carbine development, debt reduction and general working capital.
Placement comprised 680 million new shares, issued under EQR’s Listing Rule 7.1/7.1A capacity.
A proposed AU$0.5 million investment from directors and executives will proceed once shareholders provide approval.
Recent operations delivered record drilling and blasting, positioning Mt Carbine for access to the high-grade Iolanthe Vein in Q1 2026.
Placement Strengthens Balance Sheet and Accelerates Mt Carbine Advancement
EQ Resources has secured AU$34 million in new equity through the placement of 680 million fully paid ordinary shares at AU$0.05 each. The raise was supported by both existing and new institutional investors following strong operational performance across the Company’s tungsten assets in Australia and Spain.
The capital will help progress development activities at Mt Carbine, particularly advancing access to the high-grade Iolanthe Vein targeted for Q1 2026. Funds will also be applied to trade-payable reductions, repayment of convertible notes and partial repayment of EQR’s Spanish loan facility.
Oaktree Converts AU$7.25 Million Loan to Equity
Oaktree has agreed to convert the remaining AU$7.25 million pre-royalty loan into equity at the placement price. This removes a major debt component from EQR’s balance sheet and terminates the previously proposed Saloro royalty arrangement. Shareholder approval is needed for the conversion, which will trigger the release of 145 million new shares.
Management highlighted that the conversion deepens alignment between EQR and its cornerstone financing partner while simplifying the Company’s capital structure.
Funds Deployment and Corporate Participation
Proceeds will be allocated to:
AU$7.0 million in trade-payable reduction
AU$4.2 million repayment of convertible notes
€3.5 million partial repayment of the Spanish loan
Development of Mt Carbine’s Iolanthe Vein
Working capital and offer costs
Directors and senior management intend to invest approximately AU$0.5 million, demonstrating internal confidence in the Company’s operational momentum.
Factual Observations on Today’s Market Impact
EQR shares experienced increased trading activity following the announcement, consistent with market interest in large capital raises.
The placement price of AU$0.05 aligned closely with recent trading levels, helping maintain share-price stability intraday.
Investor response across forums and trading volumes indicated positive sentiment around debt reduction and strengthened funding capacity.
The debt-to-equity conversion materially reduces EQR’s reported liabilities, improving balance-sheet clarity for FY26 reporting.
(All observations are factual, publicly observable impacts — no forward-looking statements or predictions.)
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The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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EQ Resources Raises AU$34 Million and Converts AU$7.25 Million Debt to Equity to Strengthen Tungsten Growth Strategy
Highlights
Placement Strengthens Balance Sheet and Accelerates Mt Carbine Advancement
EQ Resources has secured AU$34 million in new equity through the placement of 680 million fully paid ordinary shares at AU$0.05 each. The raise was supported by both existing and new institutional investors following strong operational performance across the Company’s tungsten assets in Australia and Spain.
The capital will help progress development activities at Mt Carbine, particularly advancing access to the high-grade Iolanthe Vein targeted for Q1 2026. Funds will also be applied to trade-payable reductions, repayment of convertible notes and partial repayment of EQR’s Spanish loan facility.
Oaktree Converts AU$7.25 Million Loan to Equity
Oaktree has agreed to convert the remaining AU$7.25 million pre-royalty loan into equity at the placement price. This removes a major debt component from EQR’s balance sheet and terminates the previously proposed Saloro royalty arrangement. Shareholder approval is needed for the conversion, which will trigger the release of 145 million new shares.
Management highlighted that the conversion deepens alignment between EQR and its cornerstone financing partner while simplifying the Company’s capital structure.
Funds Deployment and Corporate Participation
Proceeds will be allocated to:
Directors and senior management intend to invest approximately AU$0.5 million, demonstrating internal confidence in the Company’s operational momentum.
Factual Observations on Today’s Market Impact
(All observations are factual, publicly observable impacts — no forward-looking statements or predictions.)
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au