trade halt, page-6

Echo Resources, Metaliko Resources to merge; Breaker upsizes deal

• Sarah Thompson
• Anthony Macdonald
• Joyce Moullakis

Two gold juniors exploring Western Australia's Yandal gold belt are set to announce a tie-up.
Echo Resources and Metaliko Resources both entered trading halts on Wednesday morning ahead of an announcement on a "material transaction".
Sources told Street Talk the companies would merge to combine their respective strengths in the historic gold region and accelerate a return to production.
Renowned prospector Mark Creasy proved the gold prospectively of the Yandal Belt in the mid-1980s, discovering the Jundee and Bronzewing deposits he later sold for $117 million dollars.

Metaliko picked up Bronzewing in 2014 for $4.8 million after the collapse of Navigator Resources.

The two juniors have history. Earlier this year a company controlled by Metaliko managing director Michael Ruane successfully moved to spill the board of Echo. Ruane was on Echo's board from February until May.
Since then, Echo has been fast tracking its Julius gold project, which lies about 75 kilometres north of Bronzewing, towards production.
A merger could see the Bronzewing plant restarted to process ore from Julius.
Elsewhere in mining, Breaker Resources has upsized its raising to $12.5 million.

As revealed by Street Talk on Tuesday, the gold explorer was seeking to raise $10 million at 50¢ a share with the help of Patersons Securities.
It's understood the deal received more than $40 million worth of demand.
Breaker shares have tripled since the start of the month, last trading at around 65¢.

​