Key points
- EQR to acquire 10% in US APT plant JV
- Eight-year offtake agreement for 4,000 tonnes of WO3
- EQR to contribute technical expertise and ore-sorting technology
- TEG to fund initial US$75 million of restart costs
- Blue Moon to contribute plant and infrastructure
Full summary
EQ Resources Ltd (EQR) has entered into a binding framework agreement with The Elmet Group (TEG) and Blue Moon Metals Inc. to establish a joint venture (JV) for the restart and operation of the Springer ammonium paratungstate (APT) plant in Nevada. EQR will hold a 10% interest in the JV, with TEG holding 70% and Blue Moon 20%. EQR will supply 4,000 tonnes of tungsten concentrate over eight years under a spot-priced offtake agreement and contribute its technical expertise, including engineering, project management, and ore-sorting technology. TEG will fund the initial US$75 million of restart costs, with Blue Moon contributing the existing plant and infrastructure. EQR's additional exposure is capped at US$3.125 million. The agreement is binding subject to the negotiation and execution of definitive agreements.
Guidance
None
Outlook
None