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Regis Resources to Merge With Vault Minerals in All-Share Deal

Falling gold prices are pushing mid-tier miners to merge for scale.

Overview

  • Regis Resources and Vault Minerals agreed to combine in an all-share merger that gives Vault investors 0.6947 Regis shares for each Vault share.
  • The merged group is expected to produce more than 700,000 ounces of gold a year, which would place it third among ASX-listed gold miners.
  • After completion, the company will keep the Regis name, with current Regis shareholders owning 51% and Vault shareholders 49%.
  • The companies describe a debt-free balance sheet with about $1.44 billion in cash and a large resource base to fund growth projects.
  • Early coverage reports different combined market values, with Law360 citing about $7.7 billion and the Australian Financial Review about $10.7 billion.