Global law firm Dentons has advised Australia’s ASX-listed EQ Resources Limited (EQR) on the acquisition of a 100% interest in Saloro from Tungsten Mining JV, a portfolio company of funds managed by Oaktree Capital Management. Saloro owns the Barruecopardo mine in Spain, the leading tungsten-producing mine in Europe. The closing of the transaction, which is pending the completion of conditions precedent and regulatory approvals, will make EQR the largest tungsten concentrate producer in the western world.

As part of the transaction, Oaktree will subscribe for 278 million new ordinary shares in EQ Resources at an issue price of $0.09 per share, amounting to an investment of $25 million. As a result, Oaktree will become a substantial shareholder in EQR with a holding of 15.86% at completion of the transaction. Oaktree will receive 78 million options, with an exercise price of $0.10 per share, exercisable during the period of 2 years following the date of completion of the share purchase agreement.

Madrid-based partner Daniel Vázquez led the deal, in close collaboration with partner Israel de Diego and senior associate Vicente Paramio, for Spanish law matters, and partner Jayne Schnider and senior associate Christopher Winn, from London, for English law matters.

Daniel Vázquez commented, “This transaction demonstrates Dentons’ capabilities in advising mining companies on complex cross-border M&A deals that are essential to the supply chain of critical raw materials which make sustainable development possible.”