ANNUAL Report June 2024 Directors’ Report 4 Operating & Financial Review Information on the operations and financial position of the Group and its business strategies and prospects for future financial years is set out earlier in this Annual Report. The auditors have issued an unqualified opinion. Corporate Structure EQ Resources is a limited company that is incorporated and domiciled in Australia. Significant Changes Significant changes in the state of affairs of the Group for the financial year were as follows: (a) Historic Wolfram Camp Mine Exploration Permit awarded to EQR expanding its exploration and development interests in the Herberton Tin-Tungsten field. EQR’s commitment to fostering regional economic growth, environmental stewardship and job creation is reflected in this strategic move. Refer ASX announcement “EQR Awarded Permit for Historic Wolfram Camp Mine” dated 27 July 2023. (b) Acquisition of leading European Tungsten producer, Saloro, from global investment Manager Oaktree Capital Management L.P. (“Oaktree”) on 18 January 2024. Through the combination of both operations, EQR becomes the largest tungsten concentrate producer in the Western World, with a robust growth pipeline across two top-tier mining jurisdictions. As part of the transaction, Oaktree invested $25 million into EQR at $0.09 per share. As part of the $25 Million investment by Oaktree, Non-executive Director Stephen Weir was appointed to the EQR Board as Oaktree’s Nominee Director and Chair of the Audit & Risk Committee on 19 January 2024. Refer ASX Announcements “EQR Acquires Leading European Tungsten Producer, Saloro S.L.U., and Secures $25 Million Investment by Oaktree” dated 10 August 2023; “EQR Completes Acquisition of Saloro S.L.U. and $25 Million Placement with Oaktree” dated 18 January 2024 and “Stephen Weir Joins EQR’s Board of Directors” dated 19 January 2024. (c) Increase in contributed equity of $42,162,613 (before share issue costs): Date Number of Shares Issue Price $ Issue of 957,055 shares @ $0.0650 per share upon the conversion of unlisted options granted to sophisticated investors (refer ASX announcement dated 11 August 2023) 11/08/2023 957,055 $0.0650 62,208 Issue of 4,698,617 shares @ $0.0650 per share upon the conversion of unlisted options granted to sophisticated (refer ASX announcement dated 23 August 2023) 23/08/2023 4,698,617 $0.0650 305,410 Issue of 3,125,000 shares @ $0.0650 per share upon the conversion of unlisted options granted to sophisticated (refer ASX announcement dated 6 September 2023) 06/09/2023 3,125,000 $0.0650 203,125 Issue of 25,000,000 shares @ $0.0650 per share upon the exercise of unlisted options granted to sophisticated investors (refer ASX announcement dated 22 September 2023) 22/09/2023 25,000,000 $0.0650 1,625,000 Issue of 16,730,321 shares @ $0.0650 per share on the conversion of 4,000,000 convertible notes (refer ASX announcement dated 28 September 2023) 28/09/2023 61,538,463 $0.0400 4,000,000 Issue of 5,000,000 shares @ $0.0600 per share upon the exercise of options granted to Key Management Personnel (refer ASX announcement dated 8 November 2023) 08/11/2023 5,000,000 $0.0600 300,000 Issue of 278,000,000 shares @ $0.0900 per share as part of placement with Oaktree Capital Management, L.P. Escrowed to 18 January 2024 (refer ASX announcement dated 18 January 2024) 18/01/2024 278,000,000 $0.0900 25,307,297 Issue of 1,000,000 shares @ $0.0400 per share upon the exercise of unlisted options granted to employees (refer ASX announcement dated 2 February 2024) 02/02/2024 1,000,000 $0.0400 40,000 Directors’ Report continued 70 EQ Resources Limited Annual Report 2024
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