PERTH (miningweekly.com) – Junior EQ Resources has raised A$6-million through a convertible note issue to fund early works at its Mt Carbine tungsten project, in Queensland, while it completes a bankable feasibility study (BFS) into the expansion of the project.
The two-year notes would have a conversion price of 6.5c a share, representing a near 45% premium to the company’s last closing price.
The company will also issue 25-million options with an exercise price of 6.5c and a two-year expiry.
“We welcome the support of lenders in the convertible note facility which will allow the company to further increase production of tungsten concentrate at a time of strong prices for this critical metal, and continue to expand the overall resource through further investigation and drilling,” said EQ Resources CEO Kevin MacNeill.
In addition to the current tailings treatment project at Mt Carbone, EQ Resources is looking to further expand the project’s ore sorting capabilities and develop an underground mine.
“Our mining team has developed a high degree of confidence in the low-grade ore resource after many months of trialling the high technology ore sorter. A new A$1.7-million mining fleet is currently arriving at site, while the required power and screening upgrades shall be completed by the end of the year allowing us to take advantage of strengthening tungsten prices which have increased US$75/t since January 2021,” said MacNeill.
The current BFS comprises the expansion of the tungsten operation from the low-grade ore stockpile and the reactivation of openpit mining from the Andy White pit.