Regis Resources has bowed out of the battle for goldmining peer Vault Minerals, opting not to match a bid by Raleigh Finlayson’s Genesis Minerals for the company.
Regis had plans to merge with Vault, having announced a $5.15 billion bid for the company in May – at the time the largest Australian gold deal of 2026.
But its offer was usurped last week, when Genesis lobbed a $5.6 billion offer which was deemed by Vault to be superior to that of Regis.
Regis had until today to make a counteroffer.
But it told the market that any further offer would not meet the value and return thresholds it applies to growth opportunities, and walked away.
“After careful consideration, the Regis board has determined not to submit a counterproposal to match the Genesis proposal and has informed Vault of this decision,” Regis said.
The move leaves Vault in the court of Genesis, which has its eye on a $12.6 billion combined company which will produce between 600,000 and 700,000 ounces of gold.
The proposed merger will consolidate Genesis’ status as a major gold producer with a focus on the Leonora-Laverton district.
Ore from Genesis’ Tower Hill project would be processed through Vault’s King of the Hills mill, saving it an estimated $715 million in the construction of a new mill and the expansion of the existing Laverton mill.
Regis will be entitled to a $50.7 million break fee – a boost which will further grow its $1.2 billion cash and gold position.
Vault is yet to formally accept Genesis’ offer and has until 7am tomorrow morning to do so.
It intends for the deal to go ahead.
“As a result of the Regis announcement, Vault intends to terminate the Regis [scheme implementation deed], and enter into a definitive agreement with Genesis to give effect to the Genesis proposal, as soon as it is able to do so,” Vault told the market.
With Vault’s assets on its books, the enlarged Genesis would compete for a position as a top-three goldminer by ounces produced with WA, according to Data & Insights.
Vault shares were steady in early trade. Regis shares fell 1 per cent to $6.45 and Vault shares were slightly higher, at $4.88.
