Minerals 260 (ASX:MI6) announced a $220 million strategic funding agreement with Franco-Nevada Corporation to accelerate the development of its Bullabulling Gold Project in Western Australia.
Located approximately 65km from Kalgoorlie, the project holds a significant resource of 4.5 million ounces of gold.
The investment—Franco-Nevada’s largest ever in Australia—follows an exhaustive due diligence process covering the project’s metallurgy, hydrology, and permitting.
The funding package is structured into two primary components: a $170 million payment to increase Franco-Nevada’s total royalty over the project to 2.45%, and a $50 million equity investment.
Through the subscription of over 111 million shares at 45 cents per share—a 7% premium to the last closing price—Franco-Nevada will secure a 4.9% stake in Minerals 260.
The funds are earmarked to de-risk the project ahead of its pre-feasibility study.
Key activities to be fast-tracked include the construction of a 400-room village, procurement of long-lead items, and the commencement of early site works and definitive feasibility study activities.
Managing Director Luke McFadyen noted that the deal validates Bullabulling as a premier Australian gold asset, providing a clear, de-risked pathway toward production while expanding the company's exploration strategy.
At the time of reporting, Minerals 260's share price was $0.52.