Vault Minerals Ltd's stock surged 5.56% during intraday trading on Tuesday following the announcement of a merger agreement with fellow Australian gold producer Regis Resources.

The all-stock deal will see Regis acquire 100% of Vault Minerals, with Vault shareholders receiving 0.6947 Regis shares for each Vault share they own. The offer represents a 10.7% premium to Vault's last closing price prior to the announcement. The merger will create a combined entity valued at approximately A$10.7 billion ($7.67 billion), positioning it as a major senior gold producer.

The boards of both companies have unanimously recommended the proposal, citing expected corporate tax benefits exceeding A$500 million and a lower cost of capital for the combined company. Upon implementation, Regis shareholders will own approximately 51% of the merged entity, with Vault shareholders owning the remaining 49%.