Corporate Activities Collaboration with the European Raw Materials Alliance The Company was pleased to announce the signing of a collaboration agreement with the European Raw Materials Alliance (‘ERMA’) and ERMA has referred to the Company in the ‘European Call for Action’ Report published on 16 May 2023 during the EU Raw Materials Week held in Brussels, Belgium (Refer ASX Announcement ‘EQR Collaboration with the European Raw Materials Alliance’ dated 17 May 2023). ERMA was launched on 29 September 2020 as part of an Action Plan on Critical Raw Materials by the European Commission and is a body corporate supported by the European Institute of Innovation and Technology (“EIT Raw Materials”). EIT Raw Materials and ERMA are co-funded by the European Commission, comprising more than 350 partners from all areas of the knowledge triangle of industry, universities and research and development in the raw materials sector. The collaboration agreement has been signed after an initial assessment by ERMA of EQR’s capabilities and recent successes with the development and reactivation of the Mt Carbine tungsten mine. The aim of the agreement is to explore a potential participation by EQR in the European tungsten mining sector. ERMA provides EQR access to its wide network of public and private institutions in the raw materials sector, including financing structures to support potential project investment in the future. This entry point to get in touch with European parties exploring tungsten mining production is highlighting the significant experience gained from the recent development at Mt Carbine. MOU Signed with Masan High-Tech Materials Memorandum of Understanding (‘MOU’) was signed with EQR’s existing joint venture partner, CRONIMET Australia Pty Ltd (‘Cronimet’), and Masan High-Tech Materials Corporation (‘Masan’) in relation to the Mt Carbine Tungsten Project. The MOU will establish a working relationship based on reciprocity and mutual benefit, exchanging knowledge and experiences around tungsten exploration, mining, and processing, potentially assessing new project opportunities, and new product applications. The MOU is augmented by an existing long-term offtake agreement the Cronimet Group has signed with Masan, which will see approximately 70% of Mt Carbine’s production for the next four years allocated to Masan. The proposed strategic partnership between EQR, CRONIMET and Masan aims to continue Mt Carbine’s growth into a world-class sustainable tungsten operation. Dr. Franziska Brantner (State Secretary) and Dr. Markus Ederer (German Ambassador) in back row, company representatives of Cronimet, EQ Resources and Masan in front row. Saloro S.L.U. Acquistion with $25 Million Oaktree Investment Subsequent to the end of the financial year, EQR announced that it has agreed binding terms to acquire leading European tungsten producer Saloro S.L.U. from global investment manager, Oaktree. This is a transformational acquisition for EQR which will strengthen its relevance in the global tungsten industry and enhance its capital marketing positioning. As part of the transaction, global investment manager, Oaktree will invest $24 million into EQR, through the subscription of 278 million new ordinary shares at $0.09 per share (representing a ~30% premium to the 15-day VWAP as at the date of the announcement). Through this combination of operations, EQR will become the largest tungsten concentrate producer in the Western World, with a robust growth pipeline across two top-tier mining jurisdictions (refer ASX Announcement “EQR Acquires Leading European Tungsten Producer, Saloro S.L.U., and Secures $25 Million Investment by Oaktree” dated 10 August 2023). Financing Activities $4.56 Million Share Placement In October 2022 EQR completed a well-supported share placement raising $4.56 million at $0.04 per share, with one (1) free attaching unlisted option for every four (4) new shares subscribed for and issued, exercisable at $0.065 (6.5 cents). Following shareholder approval, the Directors of the Company finalised their subscription for $200,000 in the placement (refer ASX Announcement “EQR Raises $4.56 Million in a Well-Supported Placement” dated 31 October 2023). EQ Resources Limited Annual Report 2023 43
RkJQdWJsaXNoZXIy MjE2NDg3