EQ Resources has received a Letter of Interest from the US Export-Import Bank (EXIM) for up to US$34 million to support the expansion of its Mt Carbine Tungsten Project.
EQ Resources Limited, a prominent global Tungsten producer, announced a significant step forward in its plans to expand the Mt Carbine Tungsten Mine, having received a Letter of Interest from the Export-Import Bank of the United States (EXIM). This crucial development signals potential funding of up to $34 million, earmarked for the capital expansion and further development of the Mt Carbine operation, a move designed to enhance the global supply chain for critical minerals, particularly tungsten.
The Letter of Interest falls under EXIM's newly launched Supply Chain Resiliency Initiative (SCRI), which aims to reduce the United States' reliance on the People’s Republic of China (PRC) for critical minerals. The SCRI seeks to finance overseas mines, fostering the development of non-PRC sources and mitigating the risk of supply chain disruptions caused by export bans and economic coercion from the PRC.
EQ Resources has long articulated its ambition to double the production capacity at its Mt Carbine Operation, contingent on securing the necessary funding. With the delivery of long-lead items and key equipment for the planned processing plant expansion already on site, the Company is well-positioned to capitalize on this potential funding. The expansion is anticipated to yield significant economies-of-scale, enabling the processing of low-grade ore from a substantial historic stockpile exceeding 10 million tonnes. This will supplement the tungsten ore extracted from the existing open pit and potential future underground operations, detailed in the 2022 Mt Carbine Underground Scoping Study. The study highlighted that only 19% of the In-Situ Mt Carbine Mineral Resources are currently categorized as Ore Reserves, indicating substantial untapped potential for long-term exploitation.
EXIM's commitment to consider a 10-year debt facility for the project highlights the strategic importance of securing diversified sources of critical minerals. While the Letter of Interest represents a significant milestone, EXIM will proceed with its standard due diligence process before issuing a final commitment for the funding transaction.
EQ Resources Limited is a global tungsten mining company dedicated to sustainable practices. Listed on the Australian Securities Exchange, the Company focuses on expanding its world-class tungsten assets at Mt Carbine in North Queensland, Australia, and Barruecopardo in the Salamanca Province, Spain. By leveraging advanced minerals processing technology and unexploited resources, EQ Resources aims to become a globally leading supplier of tungsten, contributing to the new economy and critical Minerals Sector. This potential funding from EXIM would be instrumental in achieving those ambitions and strengthening a vital global supply chain.
