MinRex Resources has entered into a definitive arrangement agreement to acquire all issued and outstanding shares of Electrum Discovery, representing a major gold-copper merger.
The transaction will proceed via a statutory plan of arrangement.
Valued at around $18.73m (A$28m), the deal is being positioned as a merger of equals.
The combined company will bring together Electrum’s gold and copper projects in Serbia with MinRex’s assets in New South Wales (NSW), Australia.
A key highlight is Electrum’s Tlamino Gold Project in Serbia, which contains near-surface inferred mineral resources of 670,000oz of gold equivalent at 2.9 grams per tonne (g/t) gold equivalent, supported by a preliminary economic assessment (PEA) completed in 2021.
MinRex’s Sofala Gold Project in NSW hosts inferred mineral resources exceeding 350,000oz of gold at a grade of 1.6g/t.
In the short term, the combined entity will prioritise unlocking value at the Tlamino Gold Project through resource expansion drilling and exploration aimed at new discoveries around the existing Barje Deposit.
This strategy will draw on the substantial current gold resource base, detailed targeting work and prior economic assessments.
Beyond the Tlamino and Sofala projects, the merged portfolio will also include Electrum’s Timok East Copper-Gold Project in Serbia’s Western Tethyan Belt, adjacent to the Zijin Bor Copper Complex.
Work at Timok East will focus on identifying a significant copper-gold system by testing potential extensions of nearby deposits.
Meanwhile, MinRex’s existing gold and base metals assets in the Lachlan Fold Belt in NSW will remain a priority, with continued emphasis on expanding resources at Sofala.
Once the transaction is completed, Electrum securityholders are expected to hold roughly 49% of the combined company, while MinRex investors will own around 51%.
Each Electrum share will be exchanged for 7.9 MinRex shares.
Directors and investors representing approximately 28% of Electrum’s issued shares have signed voting support agreements in favour of the transaction.
The merger has been unanimously endorsed by both boards and is expected to be completed in March 2026, pending standard regulatory approvals and other customary conditions.
MinRex director James Pearse said: “This merger of equals represents a pivotal moment for both companies. By combining Electrum’s highly prospective and advanced Serbian gold-copper assets with MinRex’s established NSW project portfolio, we are creating a stronger, well-funded exploration company with enhanced scale, diversification and technical depth.
“The merged group is positioned to deliver meaningful discovery and resource growth-focused exploration activity across two Tier-1 jurisdictions, with activities to commence immediately post completion of the transaction.”
In 2024 July, Minrex earned a 51% interest in exploration licence EL 7423 in NSW from Australia United Mining subsidiary Fortuis Mines.
