EQ Resources Takes 10% Stake in U.S. Tungsten Processing Joint Venture

M&A · PartnershipCommodity
โดย Oilprice.com·US·Read original
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EQ Resources has agreed to take a 10% interest in a new U.S. joint venture that aims to restart the Springer ammonium paratungstate processing plant in Nevada. Under the binding framework agreement, The Elmet Group would own 70% of the venture and serve as operator, while Blue Moon Metals would hold 20% and EQ Resources the remaining 10%. The existing Springer facility is designed for roughly 4,000 tonnes per year of APT processing capacity in its first phase, and Elmet will provide the first $75 million of restart funding, which EQ Resources said is supported by financing from the U.S. Department of War. EQ Resources' direct funding exposure is limited in the initial stages: if restart costs rise above $75 million but remain below $100 million, it would fund 12.5% of the additional spending, capped at $3.125 million, while costs above $100 million would be shared by the partners according to their ownership stakes. The venture plans to enter into an eight-year, spot-priced agreement to buy an aggregate 4,000 tonnes of contained WO3 in concentrate from EQ Resources, equivalent to a nominal 500 tonnes per year after the plant is commissioned, and for the first five years EQ Resources would have access to as much as 1,000 tonnes per year of processing capacity at Springer, equivalent to 25% of the planned first-phase capacity. The agreement is not yet the final joint venture contract, with the parties targeting completion of the main agreements within 90 days and a site master plan within six months.

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EQ Resources takes 10% of the venture and secures an eight-year agreement to sell 4,000 tonnes of contained WO3 concentrate plus access to up to 1,000 t/yr of processing capacity

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