EQ Resources has taken a major step forward by acquiring full ownership of the Mount Carbine tungsten project in Queensland. The company has finalised a deal to buy out its joint venture (JV) partner, CRONIMET Australia, securing 100 per cent control of the site’s retreatment operations.
The agreement, which builds on a head of agreement signed in October 2023, simplifies the ownership structure at Mount Carbine. The JV, originally established in 2019, saw EQ Resources’ subsidiary, Mount Carbine Retreatment, and CRONIMET Australia, a subsidiary of CRONIMET Asia, each hold a 50 per cent interest.
Together, they worked on reprocessing old tailings and low-grade ore stockpiles to extract valuable tungsten. Now, with this new deal, EQ Resources will take over CRONIMET Australia’s half of the JV.
To complete the transaction, EQ Resources will issue new shares at $0.09 per share to CRONIMET, valued at $US7.5 million. The deal also involves EQ Resources taking on all assets and liabilities of the JV, as well as the obligations under the offtake agreement for tungsten production.
CRONIMET Asia will continue to play a role in marketing the product, earning a one per cent fee for its services over the next five years. According to EQ Resources’ chief executive officer, Kevin MacNeill, this acquisition represents a positive shift for the company.
“We are pleased to conclude this agreement, which simplifies the commercial structure of our Mount Carbine operations and strengthens our position moving forward,” MacNeill said. “CRONIMET has been a great partner, and we look forward to continuing our relationship through their marketing role for our Saloro concentrate.”
The Mount Carbine project is considered one of Australia’s key tungsten sites, with a long history of production. EQ Resources has been actively developing the processing plant and has expanded operations to include the Andy White open pit.
With CRONIMET stepping away from its JV ownership role, EQ Resources now has the flexibility to streamline operations and focus on future growth at the site. The move comes at a time when global demand for tungsten is rising, particularly in industries such as:
- Mining
- Construction
- Manufacturing
EQ Resources’ full control over Mount Carbine puts the company in a strong position to capitalise on this growing demand and ramp up production. By securing this deal, EQ Resources is reinforcing its role as a leader in Australia’s tungsten sector.
The company’s plans for Mount Carbine could also provide economic benefits to the local community, creating jobs and boosting regional development. For more updates on this and other industry news, subscribe to Latest Mining News to stay informed on the latest product announcements, developments, and commodity trends.