The merger will create a gold producer with 33.6 million ounces of mineral resources and forecast annual output of 600,000–700,000 ounces.
Genesis will merge with Vault Minerals in an $8.7bn deal, forming a combined entity with a pro-forma market capitalization of A$12.6bn. Vault shareholders will receive 0.7629 Genesis shares and A$0.475 in cash per share, reflecting a 15.7% premium over Vault’s recent closing price.
The transaction values Vault at approximately A$5.6bn and is expected to generate A$2bn in post-tax synergies, including A$1.5bn over a decade. The merged group will hold 33.6 million ounces of mineral resources and 9.4 million ounces of ore reserves, with operations concentrated in Western Australia.
Post-merger, Genesis shareholders will own 59.8% of the combined group, while Vault shareholders will hold 40.2%. The enlarged entity projects pro-forma net cash of A$611m and liquidity of A$1.4bn.