Minerals 260 (ASX:MI6) has signed a $220 million strategic funding package from Franco-Nevada’s wholly owned subsidiary to accelerate and de-risk the Bullabulling Gold Project in Western Australia.
Franco-Nevada Australia will pay $170 million to increase its total royalty for Bullabulling to 2.45%, from its current royalty of 1% over certain tenements.
Royalty funding will be split over two tranches, including a $75 million upfront payment on 26 February 2026, followed by the remaining $95 million after obtaining approval for security over the tenements.
The owner of the subsidiary, Franco-Nevada, will also invest $50 million through a subscription of 111.11 million shares at $0.45 each, representing a 7% premium to Minerals 260’s last closing price. After this investment, Franco-Nevada will hold 4.9% of shares.
Funds will be used for the construction of a 400-room village, as well as the procurement of long lead items, site early works, expanded drilling, and the beginning of Definitive Feasibility Study activities.
CEO Paul Brink describes the Bullabulling Project as “one of the most attractive gold development projects in Australia” due to its growing orebody.
“After a full review by our team of the rapid and impressive progress made by Minerals 260, we are excited to increase our exposure to the project,” Brink says.
“This represents Franco-Nevada’s largest ever royalty acquisition in Australia and adds to the extensive royalty coverage we have in the country.
“Our equity investment demonstrates our confidence in the Minerals 260 team’s ability to deliver the Project and unlock value for shareholders.”
Minerals 260 is focused on becoming a mid-tier gold mining company through advancing the Bullabulling Project.
Write to Maddison Elliott at Mining.com.au
Images: Minerals 260
