Merger Risks and Rewards: Can MinRex-Electrum Unlock Serbia’s Tlamino Gold Potential?

A Strategic Union in Gold and Copper Exploration

MinRex Resources Limited (ASX, MRR) and Electrum Discovery Corp. (TSX-V, ELY) have announced a merger of equals, combining their complementary gold and copper exploration assets across Serbia and Australia. This transaction, structured as a statutory plan of arrangement, is set to create a well-capitalised explorer with a pro-forma market capitalisation of approximately A$28 million and a strong cash position of around A$8 million, free of debt.

The merged group will retain MinRex as the surviving ASX-listed entity, with Electrum shareholders receiving 7.9 MinRex shares for each Electrum share held, resulting in a near 50-50 ownership split. The transaction is expected to close by March 2026, subject to customary regulatory and shareholder approvals.

Robust Asset Portfolio Across Two Tier-1 Jurisdictions

Electrum’s flagship asset, the Tlamino Gold Project in Serbia, hosts a near-surface inferred mineral resource of 670,000 ounces gold equivalent at 2.9 grams per tonne, reported under Canadian NI 43-101 standards. This advanced project includes the Barje Deposit, where historical drilling has intersected significant gold and silver mineralisation. Although the resource estimate is a foreign estimate not yet JORC-compliant, the merged group plans to undertake infill drilling to upgrade resource classification and support updated economic studies.

Complementing this is MinRex’s Sofala Gold Project in New South Wales, Australia, with an inferred resource exceeding 350,000 ounces of gold at 1.6 grams per tonne. The Sofala project offers strong potential for resource growth through further exploration, enhancing the merged group’s exposure to quality gold assets in a well-established mining jurisdiction.

Exploration and Growth Strategy

Post-merger, the group intends to prioritise resource growth drilling at the Barje Deposit, with an initial 3,200-metre infill program planned to support an updated mineral resource estimate. Additional step-out drilling will test extensions to the east, west, and south, including the largely untested Karamanica Target, which has shown promising gold, silver, and copper anomalies.

Beyond gold, Electrum’s Timok East Copper-Gold Project in Serbia’s prolific Western Tethyan Belt offers exposure to a large copper-gold system adjacent to the Zijin Bor Copper Complex. Early-stage exploration, including geophysical surveys and trenching, has identified significant copper-gold anomalism, with further geophysical work underway to refine drill targets.

Strengthened Leadership and Market Position

The merger also brings together experienced management and technical teams. Electrum’s CEO Dr Elena Clarici and Non-Executive Director Michael Thomsen will join the MinRex board, enhancing the leadership with deep expertise in mineral exploration and development. The combined entity is positioned to leverage its diversified portfolio, financial strength, and technical depth to pursue meaningful discoveries and resource growth across two highly prospective regions.

While the Tlamino resource remains a foreign estimate under NI 43-101 and not yet JORC-compliant, the group’s commitment to upgrading the resource classification and advancing economic studies signals a clear pathway to unlocking value. Investors should note that the Preliminary Economic Assessment (PEA) completed in 2021 is at a scoping level and based solely on inferred resources, with no production targets disclosed due to regulatory guidance.