EQ Resources (ASX:EQR) said that its major shareholder, funds managed by Oaktree Capital Management, informed the firm that Oaktree will extend current financing guarantees for its wholly-owned Spanish unit, Saloro, for a further six months, according to a Thursday Australian bourse filing.

EQR assumed five credit facilities provided by Banco Santander and CaixaBank on its acquisition of Saloro. The balance of these credit facilities at Dec. 31, 2024, was AU$ 41.4 million. These credit facilities are secured by letters of credit provided by Oaktree, which are due to expire on or around July 21.

Oaktree will extend 20 million euros out of the 25 million euros of letters of credit for a further six months and has initiated the process for these extensions.

EQ Resources began talks with the Spanish banks to restructure future credit facilities as Oaktree credit support rolls off.

Its shares jumped 13% on market close.