Corporate & Financing Activities EQR Completes Acquisition of Saloro S.L.U. and $25 Million Placement with Oaktree On 18 January 2024, EQR and Oaktree Capital Management, L.P. (“Oaktree”) satisfied all conditions precedent for EQR’s acquisition of Saloro S.L.U. The transaction also comprised a $25 million placement to Oaktree at 9c per share, resulting in Oaktree now holding a 15% stake in the Company. To further streamline Saloro’s key banking relationships, the Company agreed to reduce third-party bank debt by €10 million, compared to €5 million as per the initial transaction agreements. The transformational acquisition strengthens EQR’s relevance in the global tungsten industry, with the Company becoming the largest independent tungsten concentrate producer outside of China. Oaktree’s investment in EQR enhances the Company’s shareholder register and capital market positioning, supporting the further expansion of both the Mt Carbine and Barruecopardo operations. Production ‘key performance indicators’ at Saloro strongly improved since collaborative work was first established between EQR and Saloro. Since acquisition, a further debottlenecking program, including the doubling of XRT sorting capacity, has been undertaken with initial efforts focused on improving the jigging plant and ongoing enhancements in the spirals and shaking table sections, leading to significantly better metal recoveries. Another key area of production expansion involves XRT ore sorting. Saloro’s Barruecopardo Mine, with its coarse scheelite, is well-suited for this technology. Following successful trials and results from the first TOMRA XRT Ore Sorter, introduced in August 2023, Saloro and EQR purchased a second unit, which arrived in December 2023. This addition aims to positively impact costs, utility consumption, and overall metal recovery at the Barruecopardo operation. See ASX Announcement 18th January 2024: ‘EQR Completes acquisition of Saloro S.L.U. and $25 Million placement with Oaktree’. Operating and Financial Review 4 EQ Resources Limited Annual Report 2024
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