Regis Resources and Vault Minerals have reached a merger agreement to form Australia's third-largest listed gold company, with a combined estimated valuation of $7.67 billion.
The two Perth-based mining companies issued a joint statement on Tuesday announcing that the terms of the transaction have received unanimous approval from both boards of directors. The deal involves Regis acquiring Vault. Vault shareholders will receive 0.6947 Regis shares for each Vault share they own.
This merger comes at a time of strong gold prices. Driven by a weaker US dollar and geopolitical tensions, the price of the precious metal hit a record high earlier this year.
Merger and acquisition activity in the gold sector remains high, as mining companies seek to attract investor attention and replenish depleting mineral reserves. Many miners also believe that acquiring existing mine assets is simpler and less costly than building new mines. Vault itself was formed from the merger of Red 5 and Silver Lake Resources in 2024.
Regis and Vault stated that the combination will help transform them into a large-scale gold producer with global industry competitiveness.
The companies said the merged entity would have a pro-forma market capitalization of approximately A$10.7 billion, equivalent to $7.67 billion, with expected annual gold production exceeding 700,000 troy ounces.
The miners indicated that the combined group would own five producing gold assets in Western Australia, making it the third-largest gold listing on the Australian Securities Exchange (ASX). Regis holds projects in New South Wales, Australia, while Vault has a project asset in Canada.
Jim Beyer, Chief Executive Officer of Regis, said, "This merger will create Australia's third-largest core gold listing on the ASX, with recognition in global markets."
The companies anticipate that the larger combined gold asset base will be more attractive to investors, potentially leading the market to assign a higher valuation to its earnings.
The miners disclosed that the merged entity will have a robust, debt-free balance sheet with strong cash flow, supporting new business expansion and continued returns to shareholders. They also noted that the merger is expected to yield cost savings, lower capital costs, and provide corporate tax benefits exceeding A$500 million.
Luke Tonkin, Chief Executive Officer of Vault, stated, "This transaction presents a high-quality investment opportunity for Vault shareholders, allowing them to retain significant equity participation and governance influence while gaining exposure to a larger, more resilient gold company with greater operational scale, diversification, and balance sheet strength."
The companies stated that following the merger, Regis shareholders will own approximately 51% of the new company, with the remaining shares held by Vault shareholders.
Regarding management appointments, Regis's Jim Beyer will serve as CEO of the combined company, while Vault's Russell Clark will become Non-Executive Chairman. The board will comprise four directors each from the current Regis and Vault boards.
The companies expect the transaction to be completed in August or September.
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