PE Deals

Oaktree Capital-backed Tungsten Mining to exit Saloro to EQR

Saloro is a Spanish producer of tungsten, an industrial metal.

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  • Oaktree will become a substantial shareholder in EQR with a holding of 15.86 percent
  • Oaktree is a global investment manager based in Los Angeles, California
  • The firm has $179bn in assets under management as of 30 June

Tungsten Mining, a portfolio company of Oaktree Capital Management, has agreed to sell Saloro, a Spanish producer of tungsten, an industrial metal, to EQ Resources (EQR).

Saloro is headquartered in Salamanca.

Oaktree will subscribe for 278 million subscription shares in EQR at an issue price of $0.09 per share, which represents around 30 percent premium to the 15 days VWAP, amounting to an investment of $25 million, according to a release. Oaktree will receive 78 million options with an exercise price of $0.10 per share, exercisable during the period of 2 years following the completion date.

Oaktree will become a substantial shareholder in EQR with a holding of 15.86 percent at completion of the transaction.

“This partnership reinforces our conviction about the incredible opportunity presented in the tungsten supply space, and the need to secure sustainable and ESG focused critical metals supply chains,” said Federico Alvarez-Demalde, MD at Oaktree.

EQR is the owner of the Mt Carbine Tungsten Mine near Cairns, Australia’s primary tungsten producer. Its registered office is in South Melbourne, Victoria.

Oaktree is a global investment manager with $179 billion in assets under management as of 30 June. It is based in Los Angeles, California.