EQ Resources shares surge as billionaire Andrew Forrest buys 16.8% stake
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The news: Shares in EQ Resources rallied in early trade after Fortescue executive chairman Andrew Forrest acquired a 16.8% interest in the Queensland-based tungsten mining company through his private investment vehicle post-market close on 17 July.
Shares climbed 25% to 27 cents at 11:07am AEST.
The context: Forrest’s $190 million investment will give him a 16.8% stake, comprising over 862 million fully ordinary shares in EQ Resources that has been owned by Oaktree Capital Management since 2023.
EQ Resources stated that the transaction is exclusively at a shareholder level and will not impact the company’s daily operations and management.
What they said: “Tungsten is essential to the machines that build homes, hospitals, cities and modern-day energy systems, as well as the semiconductors in every phone and computer. Yet supply is remarkably concentrated,” Forrest said.
“We are proud to become a long-term shareholder in a company that is de-risking its operations, ramping up production and beginning to generate real cashflow,” he added.
The source: ASX
