EQ Resources Limited, a global tungsten mining company with operations in Australia and Spain, announced on 22 May 2025 a significant move to bolster its balance sheet and accelerate expansion initiatives. The company has secured firm commitments to raise approximately $18.8 million through a share placement, offering 537.3 million fully paid ordinary shares at an issue price of 3.5 cents each—a price reflecting an 18% discount compared to the 15-day volume-weighted average price of 4.3 cents. Complementing this, a separate transaction will convert an outstanding loan and accrued interest totaling $1.2 million into equity, resulting in the issue of an additional 34.3 million shares. In a notable development, the company’s largest shareholder, represented by funds managed by Oaktree Capital Management L.P., has committed to contributing $8.735 million. However, this investment is pending both Foreign Investment Review Board clearance and shareholder approval at an Extraordinary General Meeting later in June 2025. The initiative has attracted interest from a broad spectrum of institutional and sophisticated investors, both domestic and international, underscoring strong market confidence amid an evolving global tungsten market affected by trade restrictions and supply challenges. Alongside the share placement, EQ Resources Limited has launched a Share Purchase Plan (SPP) designed for eligible existing shareholders. This plan offers these investors the opportunity to purchase new shares at the same 3.5 cent price—without brokerage or transaction fees—up to a maximum investment of $30,000 per shareholder, with an overall target to raise up to an additional $3 million. The timetable provided outlines key dates, including the record date on 21 May and the anticipated issue and commencement of trading for the new shares by 27 May 2025, with subsequent steps for the SPP concluding mid-June. The capital raised through these measures will be used to finance capital projects, primarily for plant expansion and optimization works at the Mt Carbine mine in Australia and the Barruecopardo mine in Spain, as well as to reduce existing debt and enhance working capital. Additionally, Lead Manager Options are part of the placement arrangement, with one option granted for every eight new shares issued, exercisable at 6.75 cents each and set to expire on 29 May 2027. For beginner traders evaluating the market sentiment, the news carries a bullish tone on the upside. The infusion of fresh capital is expected to bolster the company’s operational capacity amid global tungsten supply shortages, potentially driving up tungsten prices and strengthening future earnings. Conversely, the bearish perspective centers on potential dilution risks from the significant increase in issued shares, as well as uncertainties surrounding regulatory approvals and integration of the new capital into the company’s expansion projects. Overall, the developments suggest that EQ Resources Limited is positioning itself to take advantage of favorable market conditions in the tungsten industry while navigating inherent risks.