Regis buys Vault Minerals to create $7.7 billion gold producer

Australian gold miner Regis Resources Ltd. has agreed to buy Vault Minerals Ltd. in an all-share transaction that they said values the combined entity at about A$10.7 billion ($7.7 billion) and will attract a wider range of shareholders.

The new entity will overtake Evolution Mining Ltd. to become Australia’s third-largest gold producer by market capitalization. Vault shareholders will receive 0.6947 new fully paid ordinary shares in Regis for each share held, the companies said in a joint statement.

Dealmaking in the gold sector has increased in recent years as prices of the precious metal soared. Bullion has almost doubled over the past two years, trading near $4,500 an ounce on Tuesday. Vault was itself formed after two Australian miners consolidated assets in 2024.

The combined company will remain headquartered in Perth, Western Australia, and be headed by Regis chief executive officer Jim Beyer.

“The merged company becomes materially more relevant to the global gold investment universe,” Beyer said on a call with investors on Tuesday. “This increased scale materially improves our trading liquidity, supporting large and longer-term institutional participation.”

The merger will create a miner with annual gold production of more than 700,000 ounces, the companies said. Regis shareholders will own approximately 51% and Vault shareholders about 49% of the combined entity.

The companies also expect to realize around A$500 million in corporate tax savings, along with operational benefits.

Shares in Regis fell as much as 7.1% in Sydney, while the target Vault rose more than 6%. Regis shares closed at A$7.17 on Monday, valuing the company at A$5.4 billion, while Vault settled at A$4.50, making it worth about A$4.7 billion.

The deal follows a raft of mergers and acquisitions in recent years, which saw Northern Star Ltd. buy De Grey Mining Ltd., Gold Fields Ltd. acquire Gold Road Resources Ltd. and Ramelius Resources Ltd. combine with Spartan Resources Ltd.

While large mergers reduce the options left on the table, there will likely be further deals this year, Tim McCormack, senior mining analyst at Canaccord Genuity Australia Ltd., said by email Tuesday.

“There is still plenty of valuation bifurcation among the established producers and a number of well-advanced developers trading at big discounts to fair value, which in my view, should see mergers and acquisitions continue,” he said.

(By Paul-Alain Hunt)