MinRex Resources Limited and Electrum Discovery Announce Merger of Equals to Form a Well‑Capitalised Gold‑Copper Exploration Company

MinRex Resources Limited (ASX: MRR) and Electrum Discovery Corp. (TSX‑V: ELY, FRA:R8N, OTC: ELDCF) have entered into an Arrangement Agreement dated 5 January 2026, creating a single entity that will combine the mineral exploration and development portfolios of both companies. The transaction is structured as a merger of equals, whereby each company’s shareholders will receive a proportionate share in the newly formed company.

Transaction Structure

  • Merger Framework: The merger will be executed under the relevant corporate legislation in both Australia and Canada, with the resultant entity listed on the ASX.
  • Capitalisation: The combined company will be well‑capitalised, with an enhanced resource base that includes the Tlamino Gold Project and other gold‑copper assets.
  • Governance: A unified board of directors will be established, drawing senior executives from both organisations to lead the integrated exploration and development strategy.

Resource and Exploration Highlights

  • Tlamino Gold Project: The mineral resource estimate for the Tlamino Gold Project was reported under NI 43‑101 by Electrum (formerly Medgold Resources Corp.) and filed on SEDAR on 7 January 2021. The estimate is a foreign estimate and has not yet been classified under JORC Code mineral resource standards. A Competent Person has not performed sufficient work to confirm a JORC‑reportable resource, leaving the ultimate recoverable reserve uncertain.
  • Metal Equivalents: Detailed metal equivalent reporting is provided in the announcement, with a focus on gold and copper values derived from the current resource estimates.
  • Preliminary Economic Assessment (PEA): A cautionary statement regarding the PEA is included in the disclosure, signalling that further economic studies are required to substantiate the viability of the combined project portfolio.

Market Impact

  • Trading Halt: MinRex announced a trading halt on 4 January 2026 to allow the market to digest the merger announcement. The halt will remain in effect until the earlier of the release of the announcement or the resumption of normal trading on 7 January 2026.
  • Stock Performance: As of 1 January 2026, MRR’s closing price stood at AUD 0.013, with a 52‑week high of AUD 0.015 and a low of AUD 0.007. The merger is expected to support the share price by aligning the company’s resources with a stronger capital base and a diversified asset portfolio.

Forward‑Looking Perspective

The merger positions the new entity as a competitive player in the gold‑copper exploration and development sector, leveraging MinRex’s Australian operational expertise and Electrum’s existing project pipeline. The combined resource base offers significant upside potential once JORC‑compliant resource confirmation and subsequent feasibility studies are completed. Investors should monitor the forthcoming PEA and the progression of resource classification to assess the ultimate economic viability of the projects.