Regis Resources Withdraws Vault Bid, Secures $50.7 Million Break Fee
Synopsis
The gold miner has withdrawn from the takeover battle for Vault Minerals, opting not to match Genesis Minerals' offer and securing a $50.7 million break fee.
Key Highlights
- Regis Resources will not pay for Vault Minerals.
- Genesis to decrease the proposal by $ 1.90 per share.
- The company expects to receive an A$50.7 million break fee.
- Regis ends the period debt-free with $1.2 billion cash and bullion.
Regis Resources Ltd (ASX: RRL) will not be countering Genesis Minerals Ltd’s (ASX: GMD) compelling A$5.6 billion takeover of Vault Minerals Ltd (ASX: VAU). After withdrawing from the race, Regis announced it expects to receive a break fee of about A$50.7 million.
The firm stated it will not make a bid for Vault Minerals. Regis also said its board concluded that the conditions necessary to be able to match Genesis Minerals’ offer did not fit with value and return thresholds, reiterating a disciplined approach to acquisitions.
Focus Shifts to Organic Growth
Following its exit from the takeover process, Regis said it is still well funded and will continue to focus on existing operations and organic growth pipeline. The balance sheet is debt-free, with $1.2 billion in cash and bullion, and it continues to generate strong free cash flow across its gold operating portfolio.
Regis has also recently verified Ore Reserves at its McPhillamys Gold Project after the completion of a Pre-Feasibility Study confirming it as another major milestone for a development project.
Regis Resources Limited holds gold assets in Western Australia and New South Wales and is advancing the McPhillamys Gold Project. Regis Resources’s share price was up 44% over the last year, which has risen about 3%.
Source: Motley Fools
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