Sept 13 (Reuters) - Metallica Minerals Ltd MLM.AX :
* ASX ALERT-TRANSFORMATIONAL MERGER WITH MELIOR RESOURCES-MLM.AX
* ENTERED INTO BINDING ARRANGEMENT AGREEMENT TO MERGE WITH MELIOR RESOURCES INC TO BE APPROVED BY COURT IN BRITISH COLUMBIA, CANADA
* MERGER VALUES METALLICA AT A$0.042 PER SHARE
* METALLICA TO OFFER 20 MLM SHARES FOR EVERY 1 MLR SHARE
* MELIOR SHAREHOLDERS WILL HOLD APPROXIMATELY 64% OF MERGED ENTITY
* DIRECTORS OF METALLICA UNANIMOUSLY RECOMMEND THAT METALLICA SHAREHOLDERS VOTE IN FAVOUR OF MERGER