EQ Resources has executed the definitive agreement needed to acquire CRONIMET’s interest in the Mount Carbine retreatment joint venture (JV).
In 2019, EQ Resources, through its wholly owned subsidiary Mount Carbine Retreatment, and CRONIMET Asia, through its wholly owned subsidiary CRONIMET Australia, created a JV to reprocess historic Mount Carbine tailings and low-grade ore stockpiles.
Under this arrangement, Mount Carbine Retreatment and CRONIMET Australia each held a 50 per cent interest in the JV.
Now, the definitive agreement executed has formalised the binding heads of agreement both companies entered in October 2023.
With successful operations of the processing plant and the Mount Carbine tungsten operation expanding to include the Andy White open pit, EQ Resources and CRONIMET Australia have agreed to streamline its JV structure through EQ Resources purchasing CRONIMET Australia’s 50 per cent interest in the JV.
Under the agreement, EQ Resources will issue new ordinary shares at $0.09 per share to CRONIMET that are worth $US7.5 million.
EQ Resources will also assume all obligations under the offtake agreement, all assets and liabilities of the JV, and CRONIMET Asia will receive a net one per cent marketing fee for marketing Saloro production over five years.
“We are pleased that we could conclude the definitive agreement and simplify the commercial structure of our Mount Carbine operations and see CRONIMET join our share register,” EQR chief executive officer Kevin MacNeill said.
“CRONIMET has been a great partner in developing the processing plants and is a well-respected player in the global tungsten market. The relationship remains strong, with CRONIMET taking a marketing role for our Saloro concentrate.”
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