Regis Resources (ASX:RRL) and Vault Minerals (ASX:VAU) have announced a merger, establishing a new senior gold producer with an anticipated annual gold production of over 700,000 ounces, from a broad portfolio across Australia and Canada.
The consolidated company will host 6 million ounces in ore reserves and 20.5 million ounces in mineral resources across its portfolio.
Regis Managing Director Jim Beyer says the merger will create ”Australia’s third-largest primary ASX-listed gold producer, which demands global recognition”.
“Combining our high-quality assets across five Western Australian operating hubs, we expect annual production exceeding 700,000 ounces from a combined mineral resource base of 20.5 million ounces.”
Vault Managing Director Luke Tonkin also notes that the merger is a “compelling opportunity” for shareholders.
“Vault’s portfolio, anchored by the King of the Hills operation currently undergoing a significant mill expansion, brings long-life, high-quality assets and a strong financial position to the merger,” Tonkin says.
“By combining these strengths with Regis’ proven operational and exploration capability, the merged company is better positioned to deliver sustained production, enhanced reserve replacement, and long-term value across gold price cycles.”
Under the terms of the merger, Regis will acquire all of Vault Minerals’ fully paid ordinary shares, with Vault shareholders receiving 0.6947 new fully paid ordinary shares in Regis for each Vault share held.
Regis shareholders will own approximately 51% of the new company, and Vault shareholders will own the remaining 49%.
The arrangement has been unanimously recommended by the Vault board and endorsed and supported by the Regis board.
The combined company will continue as Regis Resources, headquartered in Perth and trading on the ASX. The board will be comprised of four directors from each company’s current board, with current Vault Chairman Russell Clark as Chair and Jim Beyer as Chief Executive Officer and Managing Director.
The companies note that this merger will move them from mid-tier producers to a globally relevant senior gold producer, aligning with Equinox Gold’s production guidance for FY26.
Both companies have significant cash from the last quarter’s production and have noted a combined annualised cash generation of $1.7 billion, putting them nearly at the top of the market in cash generation.
The companies are targeting an implementation date in August or September 2026 for the merger.
Write to Amy Rotman at Mining.com.au
Images: Regis Resources
