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20.07.26 - 16:13
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Tungsten Miner Soars After Billionaire Forrest Takes 17% Stake (ZeroHedge)
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Tungsten Miner Soars After Billionaire Forrest Takes 17% Stake
Australian mining billionaire Andrew Forrest, founder and executive chairman of iron ore giant Fortescue, has agreed to acquire Oaktree Capital's entire 16.8% stake in the Sydney-listed tungsten producer EQ Resources.
Shares of EQ Resources in Sydney surged 34% on Monday following news of the transaction, which is valued at about 190 million AUD ($133 million) based on Friday's close. The deal covers 862.1 million shares and 35.6 million options.
Forrest's most likely reasoning for the deal is that EQ Resources controls one of the largest operating tungsten platforms outside China. Tungsten is a critical metal used in armor-piercing munitions, aerospace components, cutting tools, electronics, and semiconductor manufacturing.
Bloomberg noted that, outside of China, Australia has the world's largest tungsten reserves, accounting for about 80% of global production.
Prices of tungsten in Europe reached a new all-time high of $3,02...
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