Minerals 260 (ASX:MI6) has executed a deal to acquire the Bullabulling Gold Project from privately held Norton Gold Fields.
Bullabulling, located in Western Australia’s Goldfields region, is considered one of Australia’s largest undeveloped gold deposits with a 2.3 million ounce mineral resource estimate.
Under the agreement, Minerals 260 will pay $156.5 million cash, as well as issue $10 million worth of shares. The company has already paid a $2 million deposit upon signing the proposed transaction.
Bell Potter Securities and Argonaut Securities have been appointed as joint lead managers for the capital raise.
Minerals 260 intends to fund the transaction, plus working capital to progress the project to final investment decision, via a capital raise by way of a non-underwritten public offer.
Managing Director Luke McFadyen says the opportunity for the company to develop a large-scale open-pit gold mine, puts Minerals 260 on a clear trajectory to become a mid-tier gold producer.
“Norton has done an excellent job advancing the Bullabulling Project over the past decade and Minerals 260 now has strong foundations to continue its development into production,” McFadyen says.
“We are optimistic about the outlook for the project, with last gold production at Bullabulling occurring when the gold price was around $500 per ounce.”
Further, the company is planning to begin an 80,000m reverse circulation and diamond core infill and resource extension drilling campaign once the proposed transaction is completed.
Completion of the transaction, as well as lifting of the suspension in the company’s shares remains subject to securing shareholder and regulatory approvals, completing the capital raising, and additional standard conditions for a transaction of this nature.
Minerals 260 is a diversified mineral explorer focused on discovering and developing precious and base metals projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Minerals 260
