Its main game was the advanced Youanmi gold JV with Rox Resources, but this asset is now set to be consolidated into RXL to simplify the ownership structure ahead of development.
This means a solid payday for VMC shareholders.
RXL will shell out 110m shares to VMC for its part in the JV – worth ~$30.8m, equivalent to VMC’s entire market cap — with 55m of those to be distributed to shareholders.
The remaining 55m shares with be retained by VMC, which will own 18% of RXL once the deal completes.
There’s also potential for these shares to be worth a lot more as a development decision approaches, with VMC noting that RXL “currently trades at a resource multiple that is a substantial discount to its peers”.
Managing director Matt Hogan, a veteran dealmaker who once sold an iron ore company to BHP for $204m, will be appointed to the RXL board as non-exec director.