• Tranche A: $12m will double processing capacity to 2mtpa and start underground drill testing • Tranche B: $8m to continue underground drill testing and start underground trial mining Deputy Premier, Treasurer and Minister for Trade and Investment Cameron Dick commented: “Our investment through the Queensland Critical Minerals and Battery Technology Fund provides a pathway for EQ Resources to extend the existing mine by further exploring tungsten resources accessible through underground mining. New plant equipment, drill testing and trial mining is forecast to increase capacity and extend the mine’s life by at least five years, ensuring global demand for tungsten continues to deliver local opportunities for Far North Queenslanders.” QIC - $20M Facility For Mt Carbine Expansion QIC’s State Chief Investment Officer Allison Hill commented: “Securing additional tungsten mineralisation will strengthen Queensland’s position as a significant contributor to global critical minerals supply chains. There are relatively few mines globally in a position to fill anticipated supplydemand gaps for tungsten as existing outputs are challenged and demand for clean energy technologies grows.” Queensland Investment Corporation (QIC) provides a $20million 3-year loan facility in two tranches from its Queensland Critical Minerals & Battery Technology Fund: Research and Development Tax Refund The Company received a cash refund of $2.17 million, in May 2024, following the submission and approval of its Research and Development (R&D) Tax Refund application for the 2023 financial year. This refund has been granted in recognition of various eligible R&D activities conducted during the year at EQR’s Mt Carbine Mine. See ASX Announcement 10th May 2024: ‘Mt Carbine Receives A$2.17M R&D Tax Refund’. Successful Placement of A$9.5M to Continue Mt Carbine Expansion In May 2024 EQR completed a A$9.5 million placement of new fully paid ordinary shares (New Shares) and options (New Options) to institutional and sophisticated investors (Placement). A broad range of high-quality institutional investors showed strong support for the placement. The issue price for the Placement was A$0.045 (4.5 cents) per share with 1-for-3 free attaching unlisted New Options, exercisable at A$0.0675 (6.75 cents). The Placement was conducted by Pac Partners Securities Pty Ltd (Lead Manager) and GBA Capital Holdings (Co-Manager). Funds managed by Oaktree Capital Management L.P. (Oaktree) retained 15% of the Placement to ensure its continued interest in EQR. On 29 May 2024, 205,940,008 million New Shares were issued at an issue price of $0.045 (4.5 cents) per share, along with 68,646,669 New Options, exercisable at A$0.0675 (6.75 cents) expiring on 29 May 2027. A further 20,000,000 New Options were issued to brokers on the same terms as the Placement Options. Directors subscribed for 5,111,111 New Shares and 1,703,704 New Options (equivalent to A$230,000). The Company has issued 39,304,733 New Shares and 13,101,577 New Options to Director Zhui Pei Yeo (or his nominee), plus withholding tax, as repayment of his A$1,798,570 loan to the Company. See ASX Announcement 21st May 2024: ‘Successful placement of A$9.5M to accelerate Mt Carbine Expansion’. Convertible Notes EQR announced on 28 September 2023 that investors holding the 4 million convertible notes issued in 2021 fully converted their notes into EQR ordinary shares. The 2-year interest-bearing convertible notes were partially converted in September 2021, for an amount of $2 million (equal to 2 million notes), with the balance $4 million (equal to 4 million notes) converted just before its due date. See ASX Announcement 13th September 2023: “Early Works Funding Secured for Mt Carbine Expansion Well Ahead of BFS Release” ; ASX Announcement 28th September 2023: “Investors Convert 100% of Convertible Notes as Mt Carbine Mine Ramp-up Continues”. A further issue of 750,000 convertible notes took place on 6th November 2023 with an aggregate principal value of $750,000. The notes are convertible at the option of the noteholders into ordinary shares at a conversion price of $0.100 per share at any time after issuance and up to the close of business on the maturity date. EQR Executes Definitive Agreement to Acquire Mt Carbine JV Interest from Cronimet On 21 May 2024, the Company executed the definitive agreement related to the Joint Venture Interest Transfer (Agreement) with CRONIMET Asia Pte Ltd (CR Asia) and CRONIMET Australia Pty Ltd (CR Australia) for the acquisition of CR Australia’s 50% joint venture interest in the Mt Carbine Retreatment Joint Venture (JV). Operating and Financial Review continued 6 EQ Resources Limited Annual Report 2024
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