MinRex Resources Limited (ASX: MRR) and Electrum Discovery Corp. (TSX-V: ELY) have announced a definitive agreement to merge, creating a well-capitalised gold and copper exploration company. MinRex Resources, an Australian-based ASX-listed company, focuses on gold and base metals exploration with projects in the Lachlan Fold Belt of NSW, including the Sofala Gold Project. Electrum Discovery Corp, a Canadian-based TSX-V listed company, is focused on gold and copper exploration on the Western Tethyan Belt in Serbia.
The merger will combine Electrum’s Serbian gold and copper assets with MinRex’s Australian gold and base metal projects. Key assets of the merged group will include Electrum’s Tlamino Gold Project in Serbia, which hosts an Inferred Mineral Resource of 670,000 ounces of gold equivalent, and MinRex’s Sofala Gold Project in New South Wales, with an Inferred Mineral Resource of over 350,000 ounces of gold. The merged entity will also benefit from Electrum’s Timok East Copper-Gold Project in Serbia and MinRex’s additional projects in the Lachlan Fold Belt.
Under the terms of the agreement, Electrum shareholders will receive 7.9 MinRex shares for each Electrum share held. Electrum warrants, options, and deferred share units will be cancelled in exchange for MinRex shares representing their fair value. Upon completion of the transaction, Electrum securityholders will own approximately 49% of the merged group, with MinRex shareholders holding approximately 51%. MinRex will remain the ASX-listed entity. The merged group is expected to have a pro-forma market capitalisation of approximately A$28 million, with approximately A$8 million in cash and no debt.
The boards and management teams of both companies will combine, with Dr Elena Clarici and Michael Thomsen joining the MinRex Board. The transaction is expected to close in March 2026, subject to customary approvals and conditions. MinRex has received in-principle confirmation from the ASX that Listing Rules 11.1.2 and 11.1.3 do not apply to the Transaction. Electrum shareholders representing approximately 28% of Electrum shares have entered into voting support agreements to vote in favour of the Transaction.
