EQR Signs Binding US Springer APT Plant JV

EQ Resources (ASX:EQR) has signed a binding framework agreement with The Elmet Group and Blue Moon Metals to form a US joint venture to restart, own and operate the Springer ammonium paratungstate plant in Nevada.

EQR would hold an initial 10% interest, Elmet 70% as operator, and Blue Moon 20%, with EQR entitled to appoint one nominee director. Elmet is to fund the first US$75 million of restart expenditure, supported by financing from the US Department of War. Blue Moon is to contribute the Springer APT plant and associated infrastructure and grant the JV 100% offtake rights over tungsten concentrates from its Springer Mine. Restart costs between US$75 million and US$100 million would be funded by Elmet and EQR pro rata to their relative interests, with EQR's additional exposure capped at US$3.125 million; costs above US$100 million would be funded pro rata by the JV parties. Phase 1 is targeted at about 4,000 tpa APT capacity. During the first five years EQR would have the right to access up to 1,000 tpa of APT processing capacity. The JV plans an eight-year spot-priced offtake for 4,000 tonnes in aggregate of WO3 in concentrate from EQR, nominally 500 tonnes per annum, from commissioning. EQR would contribute technical expertise including engineering and project management oversight and ore-sorting technology.

Implementation remains subject to negotiation and execution of definitive agreements, due diligence, engineering and financial review, regulatory and exchange approvals and other customary conditions. Principal definitive agreements are targeted within 90 days.