Ann: EQR acquires Tungsten Producer and Secures $25M Funding, page-72

Hi Scott, good to hear the clarification re the $35m vs $80m debt.

Barruecopardo recent timeline

Funded through $99.7m (USD) in 2015 by Oaktree out bidding an offer from Almonty. $55.5m US loan and $44.2m US of cash for 70% of the project with Ormonde.

Ormonde borrows a further 10m euro off Oaktree Sept 2019.

Ormonde sells its 30% stake to OakTree for 6m euros net 2020

(Ormonde shares fall 65% on announcement) Sold due to ongoing cost blowouts and ramp up issues.

2023 EQR acquire Barruecopardo from Oaktree

Eqr get

-25m cash

-Barruecopardo

-Barruecopardo debt of 35m Euro.($59m AUD)

Oaktree get

278m EQR shares

78m EQR options @10c AUD

1 Euro for the purchase of Barruecopardo

1 Euro for the covering of the 80m Euro of debt.

Assuming the 10c options are converted.

25m cash + 7.8 options cash -59m debt= $26.2m AUD outstanding

Today as it stands EQR is 8c so for $22.25m(current scrip value) +26.2m of debt + ignore options so + 7.8m more debt is the total value(56.25m AUD) EQR paid for Barruecopardo.

It does come with some risk. Can EQR turn the mine around and make it profitable? The XRT sorters hopefully will do this and more.

A huge benefit to EQR and shareholders is bringing on a major institutional shareholder. You would have to think with Oaktree buying in at 9c after doing their DD this transaction will get some notice from other institutional players.

Known previous costs

$44.2m USD cash - $67m AUD

80m euro loans from Oaktree - $134m AUD

35m euro loans from spanish banks - $59m AUD

+whatever original purchase price Ormonde paid and all of their pre Oaktree spending.

$260m+

Off the back of this it seems like a pretty good deal. $56m for a producing asset that cost 260m+ over the last 5 years to set up. Lets hope the installation of XRT sorters has the same impact they have at Mt Carbine then Barruecopardo may pay for itself in the next few years.