Vault Minerals' (ASX:VAU) proposed merger with Genesis Minerals (ASX:GMD) is a positive outcome for Vault shareholders, superior to the previously proposed merger with Regis Resources (ASX:RRL), Jarden said in a Tuesday note.

Genesis Minerals agreed to acquire Vault Minerals for AU$5.274 per share. Vault shareholders will receive 0.7629 new Genesis ordinary shares plus AU$0.475 in cash for each Vault share they hold.

Vault shareholders who remain Genesis shareholders are likely to benefit from the around estimated AU$2 billion undiscounted synergies, along with other likely unquantified synergies, Jarden said.

The combined entity is expected to be unhedged, providing substantial operating leverage to spot gold, the investment firm added. The combined ore reserve of around 9.4 million ounces and mineral resource of around 33.6 million ounces supports a long-life production profile.

Jarden retained its neutral rating on Vault Minerals and raised the price target to AU$5.20 from AU$4.30.

Vault Minerals' shares shed 1% in recent Wednesday trade, while Genesis Minerals' shares lost about 2%. Regis Resources' shares tumbled 5%.