MinRex Resources has entered into a definitive arrangement agreement with TSX-V-listed Electrum Discovery to acquire 100% of its issued and outstanding shares through a statutory plan of arrangement under the Business Corporations Act of British Columbia (BCBCA).
The transaction represents an about A$28-million merger of equals, expected to create a well-capitalised gold/copper exploration group combining Electrum’s highly prospective gold and copper assets in Serbia with MinRex’s gold and base metal projects in New South Wales, Australia.
Portfolio highlights include a high-grade inferred gold resource of 670 000 oz of gold-equivalent at 2.9g/t gold-equivalent at Electrum’s advanced Tlamino gold project; a preliminary economic assessment on the Tlamino project completed in 2021; and significant near-term opportunity to unlock value at Tlamino with access to MinRex’s treasury to drive resource growth drilling and discovery-focused exploration around the existing Barje deposit and testing of exceptional regional gold targets.
Moreover, there is an added benefit of exposure to gold resources at the Sofala gold project, in the high-profile Lachlan Fold Belt in New South Wales, which show strong opportunities for resource growth through further exploration activities.
Upon completion of the transaction, Electrum securityholders will own about 49% of the merged group, with MinRex shareholders holding about 51%.
The enlarged MinRex will retain its listing on the ASX.
Boards and management teams will combine to form a strengthened leadership team, including the appointment of Electrum CEO Dr Elena Clarici and Michael Thomsen to the MinRex board.
MinRex director James Pearse says the merged group is positioned to deliver meaningful discovery and resource growth-focused exploration activity across two Tier-1 jurisdictions, with activities to start immediately post completion of the transaction.
“This is a transformational transaction for Electrum Discovery. It unlocks an Australian public listing, strengthens our leadership team and significantly improves our balance sheet. I strongly believe that this transaction provides our shareholders with a significant re-rating opportunity through a larger, more diversified and well-financed company,” Clarici avers.