Minerals 260 secures $155.5m funding for Bullabulling Gold Project

Minerals 260 has secured a A$220m ($155.53m) backing statement with Franco-Nevada Corporation aiming astatine speeding up and reducing risks successful the improvement of the 4.5moz Bullabulling Gold Project, situated 65km from Kalgoorlie successful Western Australia (WA).

The statement involves Franco-Nevada Australia, a subsidiary of Franco-Nevada, expanding its royalty implicit the task and investing successful institution shares.

Franco-Nevada volition wage A$170m to elevate its royalty connected the Bullabulling task to 2.45% from the existing 1% connected definite tenements.

Additionally, it plans to put A$50m by purchasing 111,111,111 afloat paid mean shares successful Minerals 260 astatine $0.45 per share, a 7% premium implicit the company’s past closing price.

This concern volition effect successful Franco-Nevada holding a 4.9% involvement successful Minerals 260.

Minerals 260 managing manager Luke McFadyen said: “Securing a A$220m backing bundle with the world’s starring golden royalty institution astatine this aboriginal signifier of Bullabulling’s improvement is simply a large endorsement of the task and a milestone that volition let america to accelerate the task towards production, grow our exploration strategy and de-risk our backing pathway.

“Franco-Nevada is an existing royalty holder and expanding our narration with this financing is highly worth accretive comparative to different disposable backing options. Their extended owed diligence crossed each areas of the task validates Bullabulling arsenic 1 of the starring golden projects successful Australia.”

These funds are intended to trim risks and accelerate task improvement activities including the operation of accommodation facilities, procurement of materials, initiation of aboriginal tract works, commencement of definitive feasibility survey activities and enlargement of drilling programmes.

The royalty deed betwixt Minerals 260 and Franco-Nevada includes an upfront outgo of A$75m owed connected 26 February 2026 and a consequent A$95m contingent connected obtaining applicable approvals.

The statement encompasses royalties based connected golden accumulation prices and provides Franco-Nevada with circumstantial rights regarding aboriginal fiscal arrangements with Minerals 260.

Franco-Nevada volition unafraid a owe implicit the project’s tenements, pending Foreign Investment Review Board approval.

Franco-Nevada president and CEO Paul Brink said: “Bullabulling is simply a ample and increasing orebody and 1 of the astir charismatic golden improvement projects successful Australia. After a afloat reappraisal by our squad of the accelerated and awesome advancement made by Minerals 260, we are excited to summation our vulnerability to the project.”

Greenhill served arsenic the fiscal advisor for Minerals 260, portion Allens provided ineligible proposal for the transaction.