Gold explorers Torque Metals (ASX: TOR) and Aston Minerals (ASX: ASO) have agreed to come together to develop projects in two vastly different regions.

Torque will bring its 250,000-ounce Paris project from the deserts of Western Australia’s goldfields into the new merged entity; Aston the 1.5Moz Edleston project in Canada’s Ontario.

Aston’s directors have unanimously recommended that all shareholders and option holders vote in favour of Torque’s offer, in the absence of a superior bid.

Equal ownership

While Torque will acquire 100% of the fully paid ordinary shares in Aston and 100% of the unlisted Aston options on issue, the two companies’ shareholders will each own 50% of the merged entity.

The combined business will not only have the 1.75Moz in gold resources across the two exploration projects, but also pro forma cash of over $5 million to drive ongoing gold exploration activities.

Torque managing director Cristian Moreno said the proposed merger would create a dynamic, growth-focused gold explorer with a dominant position in two leading mining jurisdictions.

Aligned growth objectives

Mr Moreno said that the merger enhances the strategic potential of the Paris gold asset and aligns with Torque’s broader growth objectives.

“With a resource of 250,000oz at an impressive grade of 3.1 g/t gold, the project spans a substantial 1,200-square-kilometre tenement package, positioning it as a cornerstone of our portfolio.”

Mr Moreno added that the Edleston project complements Paris, with its 310 sq km landholding offering additional high-grade exploration opportunities.

Cash injection

“A key advantage of this merger is the injection of $4m cash on a pre-costs basis from Aston into Torque Metals,” Mr Moreno said.

“This strategic funding approach ensures that the company is well capitalised to advance exploration efforts in the current robust gold price environment.”

Entities related to Evan Cranston and Tolga Kumova will invest a combined $1m into Torque via a placement at $0.05 per share and the two will subsequently join the company’s board of directors.

‘Exciting milestone’

Aston managing director Russell Bradford said the proposed merger marks an exciting milestone for his company.

“I am particularly impressed by the scale potential of the Paris gold project, [which] boasts a dominant land package in the highly productive WA goldfields […] and significant potential to expand into a major high-grade deposit,” Mr Bradford said.

“Its strategic location, surrounded by prominent producers and explorers […] underscores the quality and opportunity this project represents.”