Franco-Nevada (NYSE:FNV) has secured its largest-ever Australian investment, signing a A$220 million ($156 million) strategic financing package with Minerals 260 (ASX:MI6).
The deal is designed to de-risk and accelerate the development of the 4.5-million-ounce Bullabulling Gold Project in Western Australia, positioning the asset for a potential production restart by the second half of 2028.
The financing is structured as a dual-tranche package.
Franco-Nevada will pay A$170 million to acquire an increased gross royalty, lifting its total coverage from 1% to 2.45% across the Bullabulling land package.
Of this, A$75 million is payable upfront, with the remaining A$95 million contingent on Foreign Investment Review Board (FIRB) approval.
Parallel to the royalty deal, the Canadian major will anchor an A$50 million equity subscription, taking a 4.9% stake in Minerals 260 at A$0.45 per share—a 7% premium to the company's last close.
The capital injection arrives at a critical juncture for Minerals 260, which doubled the Bullabulling resource estimate in late 2025.
The company intends to use the funds to bypass typical early-stage financing hurdles, moving directly into site early works, procuring long-lead equipment, and constructing a 400-bed accommodation village.
The project, located just 65km from the historic gold hub of Kalgoorlie, is currently undergoing a Pre-Feasibility Study (PFS) slated for completion in mid-2026, with a Final Investment Decision (FID) expected in early 2027.