Gold and copper exploration company, ASX-listed MinRex Resources (ASX:MRR) and TSX-V-listed Electrum Discovery have agreed to merge in a transaction structured as a merger of equals.
The deal, implemented via a statutory plan of arrangement under the Business Corporations Act (British Columbia), positions the merged entity as a dual-jurisdiction explorer with advanced projects in Serbia and Australia and a combined pro-forma market capitalisation of approximately $28 million.
The merged group will hold a diversified portfolio of gold and copper assets, including Electrum’s Tlamino Gold Project in Serbia, which hosts near-surface inferred resources of 670,000 ounces gold equivalent at 2.9 g/t AuEq, and MinRex's Sofala Gold Project in New South Wales, Australia, with over 350,000 ounces of inferred gold at 1.6 g/t.
Near-term plans at Tlamino focus on resource growth drilling and discovery exploration around the existing Barje deposit, while the Timok East Copper-Gold Project will target extensions of neighbouring copper-gold deposits in the prolific Western Tethyan Belt.
The merger also strengthens the merged company’s balance sheet, providing approximately $8 million in pro-forma cash and zero debt, enabling accelerated exploration and development activities.
MinRex will remain the ASX-listed entity, with Electrum shareholders receiving 7.9 MinRex shares per Electrum share.
The combined boards and management teams will include Electrum CEO Dr Elena Clarici and Michael Thomsen, enhancing technical expertise and strategic oversight.
The transaction, unanimously supported by both boards, is expected to close in March, subject to customary approvals and court confirmation.