Australian mining company EQ Resources Ltd (EQR) has entered into a binding agreement to acquire 100% of the shares of Tungsten Metals Group Limited (TMG), as well as George Chen's stake in Asia Tungsten Products Co Ltd (ATC). This is reported in a press release from TMG.
TMG and ATC are part of the TMG Group, which operates the largest modern ferrovolfram production plant with a capacity of 4 thousand tons per year in Haiphong Province (Vietnam).
As part of the agreement, EQR valued TMG Group at AUD$13.5 million, which will be financed by issuing 170 million new shares and paying $2.5 million in cash.
The merger of the TMG Group ferrovolfram production plant in Vietnam with the EQR mining enterprises is an attractive investment project for shareholders.
The deal is in line with EQR's strategic plans aimed at strengthening the company's position in the tungsten market. Upon completion of the transaction, EQR will diversify its products, customers and geography and become the owner and operator of key tungsten mining enterprises in the world. In addition, EQR intends to ensure the vertical integration of tungsten mining operations, taking into account the resource base and production volume.
EQ Resources is an Australian tungsten and gold mining company. The headquarters is located in South Melbourne (Australia).
TMG is an Australian company producing tungsten alloys, tungsten carbide and other tungsten—based materials for the aerospace, automotive and electronics industries. The headquarters is located in Perth (Australia).
Read also in our Telegram channel "Mergers and acquisitions. AK&M».
