Genesis Minerals launches $5.6B bid for Vault Minerals

• Vault Minerals received a binding $5.6 billion takeover bid from Genesis Minerals, which the target board has declared a superior proposal.
• The new offer provides a 14.5% financial premium over an existing merger agreement previously established with Regis Resources.
• Genesis Minerals is driving this transaction to expand its gold production profile by acquiring full control of Vault Minerals' mining assets.

Genesis Minerals (ASX:GMD) has executed a binding takeover agreement to acquire Vault Minerals (ASX:VAU) for approximately $5.6 billion, prompting the target company's board to label the transaction a superior proposal to an existing deal.

The off-market offer represents a 14.5% premium over the implied value of an existing merger agreement that Vault Minerals had previously established with Regis Resources (ASX:RRL).

Vault Minerals stated that the proposal is not subject to any financing or due diligence conditions and operates under substantially similar terms to the prior arrangement.

Under the specific provisions of the new offer, Genesis Minerals is providing 0.7629 of its own ordinary shares plus $0.475 in cash for every individual share held by Vault Minerals investors.

Following the announcement the Genesis Minerals share price was up at $6.29.

The gold mining entity has formally notified Regis Resources of the competing bid, which has triggered a standard five-business-day matching right period that officially expires on July 10.

Genesis Minerals has been actively consolidating regional gold infrastructure across its core operations, having recently met its annual production guidance for three consecutive years while progressing its major pipeline developments.