Regis, Vault sign $7.68bn merger agreement

Regis Resources and Vault Minerals have signed a binding scheme implementation deed to combine in a merger of equals through a Vault scheme of arrangement, with the transaction valued at A$10.7bn ($7.68bn).

The merger, endorsed by both companies' boards, will establish an entity with five operational mines in Western Australia (WA) and two advanced-stage gold development projects.

Vault shareholders will receive 0.6947 new fully paid ordinary shares in Regis for each Vault share they hold.

Once the merger is completed, Regis shareholders will possess around 51% of the combined enterprise, with Vault shareholders holding approximately 49%.

Regis Resources managing director and CEO Jim Beyer said: “This merger creates Australia's third-largest primary ASX [Australian Securities Exchange]-listed gold producer, which demands global recognition.

“Combining our high-quality assets across five WA operating hubs, we expect annual production exceeding 700,000oz from a combined mineral resource base of 20.5 million ounces [moz].

“With a strong balance sheet, approximately A$1.9bn in cash and bullion, and a compelling organic growth pipeline, including the McPhillamys development project and Sugar Zone, the combined company is exceptionally well-positioned to deliver long-term value and enhanced capital returns for our shareholders.”

The merged entity will benefit from a debt-free balance sheet and significant cash generation capabilities, supporting future growth initiatives and shareholder returns.

It will also have 6moz in ore reserves and 20.5moz in mineral resources, establishing the groundwork for long-term operations.

Russell Clark will serve as non-executive chairman and Jim Beyer as managing director and CEO of the combined company.

The board will include four directors from each of the existing Regis and Vault boards.

The merger creates opportunities for cost efficiencies and potential tax benefits exceeding A$500m.

Furthermore, the increased scale is projected to improve market liquidity and reduce capital costs.

The scheme requires approval from Vault shareholders, the court and other regulatory bodies.

An independent expert must also affirm that the scheme is in the best interests of Vault shareholders.

It is also contingent on no significant adverse changes for Regis or Vault, and other usual conditions. Regis shareholder approval is not necessary.

"Regis, Vault sign $7.68bn merger agreement" was originally created and published by Mining Technology, a GlobalData owned brand.

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