Minerals 260 and Franco-Nevada strike A$220m Bullabulling funding deal

The package comprises a A$170-million gross royalty acquisition and a A$50-million equity subscription, marking Franco-Nevada’s largest-ever royalty acquisition in Australia.

The deal will lift Franco-Nevada’s existing 1.00% gross royalty over certain project tenements to an effective 2.45% gross royalty across a broader Bullabulling land package covering all mineral resources and an area of interest.

In addition, Franco-Nevada has agreed to subscribe for A$50-million worth of Minerals 260 shares, acquiring 111 111 111 shares at A$0.45 each. On completion, Franco-Nevada will hold about 4.9% of Minerals 260’s issued capital.

Minerals 260 MD Luke McFadyen said that the funding deal was a “fantastic outcome” for the company and its shareholders, describing a transaction with a leading gold royalty company such as Franco-Nevada as a “major endorsement” of the project.

“Franco-Nevada is an existing royalty holder and expanding our relationship with this financing is highly value accretive relative to other available funding options,” he said.

Franco-Nevada president and CEO Paul Brink added that the Bullabulling project ranked among the most attractive gold development assets in the country.

“Bullabulling is a large and growing resource and one of the most attractive gold development projects in Australia,” he said.

“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. 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. We look forward to a long-term partnership with Minerals 260 for the development of Bullabulling and beyond.”

NEAR-TERM DEVELOPMENT PATH

Bullabulling is one of Australia’s larger near-term gold projects, with an existing resource of 3.0-million ounces in the indicated category (93-million tonnes at 1.0 g/t) and 1.5-million ounces inferred (42-million tonnes at 1.1 g/t).

Minerals 260 is targeting completion of a prefeasibility study by mid-2026, with a final investment decision expected in early 2027 and potential first gold production in the second half of 2028. The project is envisaged as a conventional openpit operation with carbon-in-leach processing.

Franco-Nevada said that, based on its review of the current resource and historical studies, throughput could potentially expand in phases to seven-million to eight-million tonnes a year, although this is not a Minerals 260 production target.