EQ Resources to take 10% stake in Nevada tungsten project JV with Elmet, Blue Moon
Australian miner EQ Resources said on Tuesday it would take a 10% stake in a joint venture with Nasdaq-listed Elmet Group and Blue Moon Metals to restart the Springer tungsten project in Nevada.
Shares of EQ Resources jumped as much as 16.9% to A$0.45, their highest level in 19 years.
Under the agreement, Elmet will hold a 70% stake and operate the project, while Canada-based Blue Moon and tungsten supplier EQ Resources will own 20% and 10%, respectively.
The joint venture plans to restart the Springer ammonium paratungstate (APT) plant in Nevada with an initial processing capacity of about 4 000 tonnes a year.
Elmet will fund the first $75-million of restart costs for the plant, backed by financing from the US Department of Defense.
Elmet and EQ Resources will jointly fund costs between $75-million and $100-million based on their ownership stakes, with EQ's contribution capped at $3.125-million, while costs above $100-million will be shared by all partners pro rata.
EQ Resources will supply 4 000 tonnes of tungsten concentrate to the JV under an eight-year offtake arrangement, with the deal allowing it access for up to 1 000 tonnes a year of APT processing capacity at the plant during the first five years of operations.
"We are already producing tungsten from Australia and Spain, and this proposed joint venture gives us a pathway into downstream APT processing in the United States," said Craig Bradshaw, MD of EQ Resources.
The company will also contribute its technical expertise, including engineering and project management oversight, and ore-sorting technology.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
CMTS is a leading, well-established EC&I contractor with 37+ years of mining and industrial experience. We execute full-scope EC&I projects with...
VISIT SHOWROOM
Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
