Electrum Discovery Announces Merger of Equals with MinRex Resources to Create Well-Capitalized Gold-Copper Exploration and Development Company

Core Viewpoint - Electrum Discovery Corp. has entered into an arrangement agreement with MinRex Resources Limited to combine in a share exchange transaction, creating a stronger, well-capitalized exploration company with a diversified portfolio of gold and copper projects in Serbia and Australia [1][2][4]. Company Overview - Electrum Discovery Corp. is a Canadian-based company focused on advancing its two projects: the Novo Tlamino Gold Project and the Timok East Copper-Gold Project, located in the Western Tethyan Belt in Serbia [27]. - The company aims to maximize the value of its mineral projects for stakeholders while promoting sustainability and governance [28]. Transaction Details - The transaction will result in MinRex being the surviving entity, with Electrum shareholders receiving approximately 49.3% of the shares of the combined company [3][11]. - Electrum shareholders will receive about 7.9 MinRex shares for each Electrum common share held, totaling approximately 966.67 million MinRex shares to be issued [12][13]. - The combined company will have a pro forma cash balance exceeding A$8 million and no debt, enhancing its financial position [2][3]. Strategic Rationale - The merger is described as a transformational opportunity for Electrum, providing an Australian public listing and a stronger leadership team [2][4]. - The combined company will focus on unlocking value from the Novo Tlamino Gold Project, which hosts inferred mineral resources of 670,000 ounces of gold equivalent [10][11]. - The strategic combination aims to create a well-capitalized gold-copper explorer with advanced projects in two established mining jurisdictions [4][10]. Exploration Strategy - Post-transaction, the combined company will prioritize infill drilling at the Barje Deposit to support an updated mineral resource estimate [6][8]. - A drilling program of approximately 3,200 meters is planned, along with an additional 1,000 meters of step-out drilling to test potential extensions of the Barje Deposit [7][8]. - The Novo Tlamino Gold Project also has highly prospective regional gold targets, including the Karamanica Target, which has shown promising historical assay results [9][10]. Leadership and Governance - The board and management teams of both companies will combine to form a strengthened leadership team, with Dr. Elena Clarici and Michael Thomsen joining the board of directors of the combined company [15][19]. - Insiders and significant shareholders of Electrum, holding approximately 28% of the issued shares, have agreed to support the transaction [3][11]. Regulatory and Approval Process - The transaction requires approval from the Supreme Court of British Columbia and Electrum shareholders at a special meeting [14][18]. - The expected completion date for the transaction is March 2026, subject to regulatory approvals and other conditions [21][18].