EQ Resources shifts funding approach

EQ Resources (ASX:EQR) has announced a shift in its funding strategy for the expansion of its Mt Carbine Mine in Queensland. The company has decided to discontinue a previously planned A$20 million loan facility with the Queensland Investment Corporation. This move comes as the terms were not favorable for shareholders. However, EQR remains optimistic about its growth plans, supported by positive investment arrangements and interest from new investors.

EQR's future plans and strategic outlook

EQ Resources (ASX:EQR) has chosen to discontinue a significant A$20 million loan facility with QIC due to unfavorable terms for shareholders. Instead, EQR will focus on alternative funding, including convertible notes and offtake deals with Elmet Technologies and Square Resources. The company is also exploring potential investments from other parties, particularly large Western tungsten consumers. Despite the funding shift, EQR has achieved record production rates and plans to capitalize on higher ore grades by March 2025. The company continues to pursue sustainable mining and aims to enhance its position in the critical minerals sector through strategic acquisitions like the Tungsten Metals Group. Forward-looking statements in the announcement highlight the inherent risks in mining, but EQR's proactive approach suggests a strong commitment to growth and sustainability.

Executive insights on strategic decision

The decision to discontinue the QIC loan facility was made after careful consideration of the additional costs and revised terms, which we believe were not in the best interest of our shareholders.