What's really going on?

Ran a few things via Chat GPT - DYOR - I am not presenting this as fact, but food for thought, feel free to debunk any of this especially the more vocal and loyal holders.

Oaktree, EQR, and the Saloro deal

The Real Deal – Oaktree & EQRSTRUCTURE OF THE ORIGINAL SALORO TRANSACTION

Oaktree owned Saloro (the tungsten project in Spain), but the asset was buried under significant internal debt (~$80M+).In 2022, EQ Resources acquired Saloro, but as part of the deal:Oaktree forgave ~$80M in intercompany loans (paper write-down).$50M in external Oaktree debt (actual liability) was transferred to EQ Resources — this is real debt now sitting on EQR’s balance sheet.Oaktree also tipped in ~$25M cash in exchange for equity at ~9 cents per share.

So EQ got the asset, the debt, and some cash — Oaktree walked away with a major equity stake and a structured path to control.

CURRENT MOVE: CONTROL CONSOLIDATION + AVERAGING DOWN

Now EQR isaying down Oaktree's legacy debtPossibly using funds Oaktree themselves are injecting via placements.So yes — Oaktree is getting repaid with their own money, but in exchange, gaining more EQR equity at lower prices.

Averaging down from 9c to as low as 3.5cThis is massive value accumulation. Their cost base across tranches is dropping while their equity percentage increases.Likely structure:9c original entryFollow-on at 6cRecent placements at 3.5–4c

Strengthening boardroom & operational influenceWatch for shifts in directors, technical team, or offtake strategies that show a long game in action.

STRATEGIC ANALYSIS Why Oaktree’s Strategy is Smart (for them):

They recycled a distressed asset (Saloro) into a listed vehicle they now partially control.They’ve de-risked their exposure by converting bad internal debt into hard equity and keeping the external debt serviced.They’re slow-rolling their average entry cost down while tightening grip without triggering takeover laws (e.g., by staying below 20% or using associates).

Why This is Dangerous for Minority Holders:You’re getting diluted heavily, while Oaktree is effectively funding their own repayment through discounted placements.The strategy signals they’re playing a 2–3 year game, not building long-term shared upside with retail holders.If production or commodity pricing doesn’t accelerate, Oaktree can still come out ahead — you might not.

WHAT HAPPENS NEXT? Not the last raise.

If EQ needs more capex to push Saloro to full production, more placements are likely — and Oaktree could keep averaging down to ~3c.

Eventual Exit:If tungsten prices spike, Saloro hits nameplate, and the EU subsidy train rolls in — expect Oaktree toush for a dual listing (e.g., TSX or Nasdaq) orSell to a mid-tier miner or downstream strategic buyer at ~12–15c (as you speculated)

Summary for Shareholders:ElementReality CheckSaloro AcquisitionEQ got the asset, $50M Oaktree debt, and $25M in cash — but took on full risk

Oaktree StrategyAveraging down and building control at deep discounts

Retail Shareholder ImpactDilution, limited say, optional upside if you ride their exit waveNext MovesExpect further placements, possible asset monetisation

DYOR - not all entirely accurate but food for thought.