EQ Resources (ASX:EQR) shares surged on Monday, 20 July 2026, after an investment vehicle owned by Australian mining billionaire Andrew Forrest agreed to acquire a major stake in the tungsten producer.
The stock climbed as much as 34.1% to A$0.295, its strongest intraday percentage gain since early February 2025. The sharp rise showed how strongly investors welcomed Forrest’s arrival as a new cornerstone shareholder.
What Did Andrew Forrest Buy?
Wonongarra Pty Ltd, an investment vehicle wholly owned by Forrest, agreed to acquire Oaktree Capital Management’s entire interest in EQ Resources.
The transaction covers approximately 862.1 million ordinary shares and 35.6 million options. Together, the holding represents about 16.8% of EQ Resources’ issued capital.
Based on the company’s previous closing share price, the ordinary shares had a market value of approximately A$189.7 million. However, EQ Resources did not disclose the actual purchase price on 20 July. The A$189.7 million figure is therefore the market value of the shares, not necessarily the amount Forrest agreed to pay.
The deal is between existing shareholders. EQ Resources is not raising new money and will not receive the sale proceeds. The company said the ownership change would not affect its strategy, management, employees or daily operations.
Why Did EQ Resources Shares Jump?
Investors appear to see Forrest’s involvement as a major vote of confidence in EQ Resources and the long-term outlook for tungsten.
Forrest said he planned to become a long-term shareholder and praised the company for reducing operational risks, increasing production and beginning to generate real cash flow.
The right connected to Oaktree’s holding to appoint a director to the EQ Resources board will also transfer to Wonongarra. This could give Forrest’s investment vehicle greater involvement in the company’s future direction. No new director was announced on 20 July.
Oaktree had been a cornerstone investor in EQ Resources since 2023. It supported the company’s acquisition of the Barruecopardo tungsten mine in Spain and the continued expansion of the Mt Carbine operation in North Queensland.
Why Is Tungsten Important?
Tungsten is used in industrial machinery, semiconductors, construction equipment, and defence applications. Its strength and ability to withstand very high temperatures make it important for many specialised products.
Western countries are paying greater attention to tungsten because global production is highly concentrated. This has increased interest in companies that can supply the mineral from operations outside the main Asian supply chain.
EQ Resources operates the Mt Carbine mine in Australia and the Barruecopardo mine in Spain, giving it exposure to growing demand for more secure Western mineral supplies.
What Should Investors Watch Next?
For investors, Forrest’s arrival improves market confidence, but it does not remove the normal risks associated with a smaller mining company.
The next test is whether EQ Resources can continue increasing production, control operating costs, and turn strong tungsten demand into dependable cash flow. Investors should also watch for a future board appointment linked to Wonongarra.
The 34% share-price surge reflects excitement about Forrest’s backing. Longer-term performance will depend on whether EQ Resources can convert that confidence into stronger operations, earnings and cash generation.
