EQ Resources (ASX:EQR) agreed to acquire Tungsten Metals Group and a 40% stake in Asia Tungsten Products for an enterprise value of AU$13.5 million, according to a Monday filing with the Australian bourse.

The combined entities, referred to as the Tungsten Metals Group, own and operate a ferrotungsten plant in Haiphong Province, Vietnam, the filing said. The plant has an annual production capacity of 4,000 tonnes.

Upon completion of the transaction, EQR will issue about 170 million shares, pay AU$2.5 million in cash, and assume TMG Group's debt.

Due diligence is expected to be completed and definite agreements finalized by Dec. 20, the filing said. The agreement is expected to be completed in the first half of 2025.

The company's shares rose almost 7% in recent Monday trade and earlier hit a new 52-week high.

Price (AUD): $0.05, Change: $+0.003, Percent Change: +6.52%