EQ Resources enters US tungsten plant joint venture

• EQ Resources enters a binding framework agreement for a 10% stake in a US tungsten joint venture.
• The deal covers access to processing capacity and an eight-year offtake agreement.
• The joint venture aims to restart and operate the 4,000 tpa Springer plant in Nevada.

EQ Resources (ASX:EQR) has signed a binding framework agreement with The Elmet Group (NASDAQ:ELMT) and Blue Moon Metals (NASDAQ:BMM) to restart and operate the 4,000 tpa Springer ammonium paratungstate plant in Nevada.

The agreement creates a joint venture where EQ Resources will hold an initial 10% interest alongside Blue Moon at 20% and operator Elmet at 70%.

"This transaction is transformational for EQR. The agreement to enter into the JV for the Springer Project delivers a 10% interest in what will be the premier APT facility in North America,” stated EQR Managing Director Craig Bradshaw.

The Elmet Group will fund the first US$75 million of restart expenditure for refurbishment and commissioning, supported by financing from the US Department of War.

Under the framework, EQ Resources will contribute technical expertise and 4,000 tonnes of contained tungsten trioxide concentrate over an eight-year spot-priced offtake agreement.

The transaction gives EQ Resources the right to access up to 1,000 tpa of processing capacity during its first five years of operations.

Following the announcement the EQ Resources share price was unchanged at $0.40.

EQ Resources operates global tungsten assets, primarily driving production from its flagship operations at Mt Carbine in Queensland alongside regional assets in Spain.