11:33 AM EST, 12/27/2024 (MT Newswires) -- BWR Exploration (BWR.V) on Friday said it has signed a binding Letter of Intent with privately-held Electro Metals and Mining that would result in the reverse takeover of BWR by Electro.

Toronto-based Electro owns a block of claims covering 113.6 hectares with historical mineralization and, on an adjacent block of 5,830 hectares, Electro has an option agreement to earn 100% interest in an advanced stage exploration property near Rouyn-Noranda, Quebec.

The two companies will each have to complete a unit financing to raise up to a combined $300,000 for immediate use for near term commitments and to advance the transaction.

Additionally, BWR and Electro also expect to complete concurrent financings to complete the transaction. BWR is expected to raise between $1.75 million and $2.25 million via a flow-through financing, while Electro expects to raise between $300,000 to $500,000 via a hard dollar private placement.