Minerals 260 Secures Bullabulling Gold Project in $166.5M Deal, Poised for 2025 Growth
Minerals 260 Limited has executed a binding agreement to acquire the Bullabulling Gold Project, a major gold resource in Western Australia, setting the stage for a transformative 2025. The acquisition brings a substantial 2.3 million ounce gold resource and signals a strategic pivot towards near-term production.
- Acquisition of Bullabulling Gold Project for A$156.5 million cash plus A$10 million in shares
- Bullabulling hosts a JORC 2012 Mineral Resource Estimate of 60Mt @ 1.2g/t Au for 2.3Moz gold
- Planned 80,000m drilling campaign to extend and infill resource post-acquisition
- Board refreshed with new Chairman Tim Goyder and Non-Executive Director Stacey Apostolou
- Equity raise underway to fund acquisition and support growth strategy
Strategic Acquisition Positions Minerals 260 for Growth
In a landmark move, Minerals 260 Limited (ASX: MI6) has executed binding documentation to acquire 100% of the Bullabulling Gold Project from Norton Gold Fields Pty Ltd, a subsidiary of Zijin Mining Group. This acquisition, announced in late January 2025, marks a significant step in Minerals 260's evolution from an explorer to a near-term gold producer.
The Bullabulling Project, located 25km southwest of Coolgardie in Western Australia's prolific Eastern Goldfields, boasts a JORC 2012 Mineral Resource Estimate (MRE) of 60 million tonnes at 1.2 grams per tonne gold, equating to approximately 2.3 million ounces. Notably, around 60% of this resource is classified as Indicated, providing a robust foundation for advancing towards production.
Exceptional Value Acquisition with Clear Development Path
The acquisition price of A$156.5 million in cash plus A$10 million in Minerals 260 shares translates to an attractive cost of about A$74 per ounce of gold. This valuation reflects the project's scale, quality, and strategic location within an infrastructure-rich mining region. Bullabulling's granted mining leases and existing on-site infrastructure, including an exploration camp and water services, further de-risk the development pathway.
Minerals 260 plans to immediately commence an extensive 80,000-metre Reverse Circulation and Diamond Core drilling campaign aimed at infilling and extending the resource along strike and at depth. This program is critical to upgrading resource categories and underpinning a future mining operation.
Corporate Refresh and Funding Strategy
Alongside the acquisition, Minerals 260 has refreshed its leadership team. Tim Goyder has been appointed Non-Executive Chairman, bringing seasoned governance experience, while Stacey Apostolou joins as a Non-Executive Director, adding deep financial expertise in the resources sector. Jamie Armes takes over as Chief Financial Officer and Company Secretary, reinforcing the company's financial stewardship as it scales.
To fund the cash component of the acquisition, Minerals 260 is preparing an equity raise, with Bell Potter Securities and Argonaut Securities appointed as Joint Lead Managers. The company has outlined a clear timetable targeting completion of the transaction by early April 2025, subject to shareholder approval, regulatory consents, and successful capital raising.
Ongoing Exploration and Portfolio Review
While Bullabulling takes centre stage, Minerals 260 continues to advance its other projects. The Moora Project has seen recent infill auger drilling and geophysical surveys targeting copper-gold mineralisation, with assay results pending. The Aston Project has expanded with two new tenements granted, enhancing its lithium, uranium, and rare earth element potential. However, the Dingo Rocks Project is slated for surrender following a strategic review, reflecting the company's sharpened focus on Bullabulling and high-potential assets.
Minerals 260 ended the quarter with a cash balance of A$9.2 million, reflecting disciplined expenditure and positioning the company to execute its near-term growth plans effectively.
Bottom Line?
With Bullabulling acquisition underway and a robust drilling program imminent, Minerals 260 is set to redefine its market position in 2025—pending regulatory and shareholder green lights.
Questions in the middle?
- Will the upcoming equity raise secure sufficient funding to complete the Bullabulling acquisition without dilution concerns?
- How will the results of the planned 80,000m drilling campaign impact the resource classification and project economics?
- What are the timelines and risks associated with obtaining the necessary regulatory and shareholder approvals?
