Minotaur Resources Ltd and Breakaway Resources Ltd look set to merge as the sharp decline in equity raising activity continues to cripple junior resources stocks, The Australian reports.
According to the newspaper, Minotaur and Breakaway are in talks over a deal that would see the latter avoid a dilutive equity raising.
Yesterday, Breakaway requested its shares be placed in a trading halt "pending the release of an announcement to the market in relation to a significant corporate transaction involving a change of control.
The Australian reports Breakaway had less than $800,000 cash available at the end of March, while Minotaur had $9.3 million at its disposal (see Brendon Lau's Mining for a ROE revival).
