Shares in EQ Resources Ltd (ASX: EQR) have surged more than 20% after it was revealed iron ore magnate Andrew Forrest has bought a major stake in the company.
Image source: Getty Images
Cornerstone stake bought out
EQ Resources said in a statement to the ASX that Dr Forrest had bought Oaktree Capital Management's 16.8% stake in the company.
The company added:
Oaktree has been a cornerstone investor in EQR since 2023, supporting the Company's acquisition of the Barruecopardo tungsten mine in Spain and the ongoing expansion of the Mt Carbine tungsten mine in North Queensland, which together have positioned EQR as the largest western tungsten producer. This transaction is at the shareholder level and will not impact the strategy, day-to-day operations, management or employees of EQR.
EQ Resources Managing Director Craig Bradshaw thanked Oaktree for their support, saying they backed the company's vision at a pivotal time.
He said regarding the transaction:
We warmly welcome Dr Forrest's investment in the Company. It is a strong endorsement for EQ Resources to see the ownership baton passed from a financial investor to a stalwart of the Australian mining industry with a proven track record of developing and growing assets. This is a great vote of confidence in EQ Resources, our people, and the growth strategy we are executing across our operations in Australia and Spain.
Dr Forrest said he was glad to be backing an Australian critical minerals producer, "at the moment the world has woken up to how fragile critical mineral supply chains have become''.
He added:
Tungsten is essential to the machines that build our homes, hospitals, cities and modern-day energy systems, as well as the semiconductors in every phone and computer. Yet global supply is remarkably concentrated. 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 cash flow. We look forward to seeing the business continue to grow.
Dr Forrest founded iron ore producer Fortescue Ltd (ASX: FMG) and remains Executive Chair and a major shareholder with slightly more than a third of the group's shares under his ownership.
Tungsten shares a multi-bagger
EQ Resources shares added 22.7% in early trade to 27 cents. The company's shares are up 610.5% over a 12-month period.
In a recent investor presentation, the company made the point that China currently controls 85% of global tungsten supply.
EQ Resources produced 1,189 tonnes of tungsten trioxide in FY26 and said both of its mining operations had opportunities to scale up.
EQ Resources is valued at $1.13 billion.
