EQ Resources (ASX:EQR) signed a binding term sheet with Traxys Europe for a three-year prepayment facility of 15 million euros, according to a Tuesday filing with the Australian bourse.

The term sheet also outlines commercial terms for an offtake and sales arrangement, comprising an initial five-year offtake for a minimum 7,000 tonnes of tungsten concentrate containing at least 3,500 tonnes of tungsten trioxide at an estimated value of AU$400 million, the filing said.

Proceeds will be used to refinance 15 million euros of the existing debt facilities owed by the company's Saloro subsidiary, according to the filing.

The company's shares jumped 3% in recent Tuesday trade.