Minerals 260 secures $200M funding for Bullabulling Project

• Minerals 260 secures an additional $200 million funding package from Franco-Nevada for the Bullabulling Gold Project.
• The deal includes $170 million to increase Franco-Nevada Australia’s royalty rate and $30 million for future equity.
• The capital will support the development of the 6.2 million ounce gold asset located in Western Australia.

Minerals 260 (ASX:MI6) has signed an additional $200 million funding agreement with Franco-Nevada Australia to support the Bullabulling Gold Project.

This new deal increases Franco-Nevada’s total commitment to the project to $420 million following its initial $220 million investment in February.

:This is another exceptional milestone for Minerals 260 and our shareholders. Securing this level of support from Franco Nevada, a ~$50 billion market cap company and the largest royalty company in the world, further endorses Bullabulling as one of Australia’s leading gold development projects," said Minerals 260 Managing Director Luke McFadyen.

Under the agreed terms, Franco-Nevada Australia will pay $170 million to increase its royalty in a future equity raising.

The transaction follows due diligence on the 6.2 million ounce mineral resource and pre-feasibility study for the site.

Following the announcement, the Minerals 260 share price was $0.88.

Franco-Nevada will also contribute up to $100,000 annually over three years to support local community, education, and environmental initiatives.

The funding supports ongoing development efforts for the gold asset situated 65km from Kalgoorlie in Western Australia.