EQ Resources Fully Funded for Mt Carbine Tungsten Project

ASX-listed EQ Resources Limited (EQR) is fully funded for the development of its Mt Carbine tungsten project. The company reports that it has secured additional funding commitments of A$5.7 million from its joint venture and offtake partner, the German Cronimet Group, and its director, Zhui Pei Yeo.

This funding is in addition to the A$6 million recently awarded by the Federal Government under the Critical Minerals Acceleration Initiative. 2021 bankable feasibility study for the expansion project estimates that the project will require approximately A$19 million in capital investment and contemplates a 12-year operation focused on open pit development of the Andy White deposit, supplemented by processing of 12 million tonnes of low grade stockpiled processing of the ore.

The Mt Carbine tungsten project's open pit will be processed in the third and fourth years of operation and will generate operating pre-tax cash flows of A$38 million and A$95 million, respectively. The project will also have a net present value of A$13.15 million and an internal rate of return of 154%.

Mt Carbine is located 120km by sealed road, north-west of Cairns in Far North Queensland. The project is on granted Mining Leases with power, water, tailings storage and environmental approvals in place for tungsten production and quarrying.

EQ Resources has indicated that these financial guarantees will fully fund the Mt Carbine plant expansion. Cronimet has entered into a multi-year offtake contract with a "Tier 1" customer, and Cronimet will be transferring a significant upfront payment to the project on a one-to-one basis. Executive Officer Kevin MacNeill said, "It's great to see how well our concentrate is being received by end users."

"The total cost of capital will be less than 3%, extremely competitive for a company that specializes in producing a concentrate that is highly sought after in the marketplace. Upon completion of early engineering, Mt Carbine will employ over 70 workers, primarily from nearby townships, working with leading local contractors and utilizing the services of businesses in the Mt Molloy and Mareeba areas."

EQ Resources Limited, an ASX listed company with its flagship Mt Carbine tungsten project located in northern Queensland, aims to be Australia's preeminent tungsten producer using advanced technology, historical inventory, and undeveloped resources, in addition to holding a gold exploration license in New South Wales.

EQR's objective is to create shareholder value through the exploration and development of its current portfolio while continuing to evaluate companies and exploration opportunities in the new economy and critical mineral sectors.

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