Minerals 260 (ASX:MI6) has secured an additional $200 million funding package from Franco-Nevada (TSX:FNV) to advance development of the Bullabulling Gold Project in Western Australia.
The package comprises $170 million for an increased royalty and Franco-Nevada’s commitment to subscribe for $30 million in a future equity raising. This brings Franco-Nevada’s total investment in the company to $420 million since February 2026.
Franco-Nevada Australia’s $170 million payment will increase its royalty by 1.45% to an aggregate entitlement of 3.90% across the royalty area. Once cumulative gold production from the royalty area reaches 6 million ounces (Moz), the aggregate royalty payable reduces to 2.75%.
Managing Director Luke McFadyen says the board is ‘thrilled’ to extend the company’s partnership with Franco-Nevada.
“Securing this level of support from Franco Nevada, a [roughly] $50-billion market cap company and the largest royalty company in the world, further endorses Bullabulling as one of Australia’s leading gold development projects,” McFadyen says.
Franco-Nevada President and CEO Paul Brink says both the team and the orebody continue to surpass expectations.
“We are delighted to take this next step in building our partnership with the company and firmly believe that our financial backing can play a lynchpin role in generating value for Minerals 260 shareholders,” Brink says.
The Bullabulling Gold Project, located 65km from Kalgoorlie, hosts a mineral resource estimate of 190 million tonnes (Mt) @ at 1.00 grams per tonne gold for 6.2Moz across five deposits, including 140Mt in the indicated category and 51Mt in the inferred category.
Franco-Nevada will also contribute up to $100,000 each year for three years to support local community, education, and environment initiatives.
Minerals 260 confirms it remains in a trading halt pending a further announcement regarding a proposed equity raising.
Minerals 260 is an explorer and developer focused on advancing its flagship Bullabulling Gold Project in WA.
Write to Paula Fabe at Mining.com.au
Images: Minerals 260
