Minerals 260 Limited has launched a $200-$220 million public offer to fund the acquisition of the Bullabulling Gold Project in Western Australia, featuring a 2.3 million ounce JORC-compliant resource. The company seeks ASX re-admission following a significant change in scale of activities.
- Public offer to raise $200-$220 million at $0.12 per share
- Acquisition of 100% of Bullabulling Gold Pty Ltd and Bullabulling Operations Pty Ltd
- Bullabulling Gold Project hosts 2.3 million ounce JORC-compliant gold resource
- Offer conditional on shareholder and regulatory approvals, minimum subscription, and ASX re-compliance
- Comprehensive risk, environmental, native title, and tenement disclosures included
Transformative Acquisition and Capital Raise
Minerals 260 Limited (ASX: MI6) has announced a significant public offer aiming to raise between $200 million and $220 million through the issuance of up to 1.83 billion shares priced at $0.12 each. The proceeds will primarily fund the acquisition of 100% of Bullabulling Gold Pty Ltd and Bullabulling Operations Pty Ltd, which collectively hold the Bullabulling Gold Project in Western Australia’s Eastern Goldfields region.
This acquisition represents a transformational step for Minerals 260, marking a substantial change in the scale of its activities and prompting the company to seek re-compliance with ASX Listing Rules Chapters 1 and 2 for re-admission to the official list. The Bullabulling Gold Project is underpinned by a JORC-compliant Mineral Resource of approximately 2.3 million ounces of gold, positioning it as one of Australia’s largest undeveloped gold deposits.
Project Overview and Strategic Rationale
Located about 25 km southwest of Coolgardie and 65 km from Kalgoorlie-Boulder, the Bullabulling Gold Project benefits from established infrastructure and a skilled workforce in a tier-1 mining jurisdiction. The project comprises granted mining leases, exploration licenses, and prospecting licenses covering approximately 293 square kilometers.
Minerals 260’s strategy focuses on leveraging this advanced gold asset to accelerate its growth trajectory towards becoming a mid-tier gold producer. The company plans an extensive 80,000-meter drilling program to upgrade and expand the existing Mineral Resource, alongside metallurgical, geotechnical, and environmental studies to support development.
Offer Structure and Use of Funds
The public offer includes a priority component for eligible shareholders and is complemented by secondary offers comprising consideration shares issued to the vendor and director options. The total consideration for the acquisition is approximately $166.5 million, split between $156.5 million in cash and $10 million in scrip.
Funds raised will be allocated primarily to the acquisition payment, with substantial investment earmarked for exploration and development activities at Bullabulling. Additional funds will support ongoing exploration at Minerals 260’s existing projects, including the Moora Copper-Gold-PGE and Aston Lithium Rare Earths projects.
Comprehensive Risk and Regulatory Disclosures
The prospectus provides detailed disclosures on risks including ASX re-admission uncertainties, dilution from the equity raise, completion risks related to conditions precedent, and operational risks inherent in mineral exploration and development. Environmental and native title considerations are extensively covered, with the company holding Native Title Land Use Agreements with the Marlinyu Ghoorlie People and other heritage agreements to manage social and regulatory obligations.
Tenement status and legal encumbrances are meticulously documented, including royalty agreements with Franco-Nevada and Vox Royalty Australia, and detailed tenement conditions imposed by regulatory authorities.
Independent Technical and Financial Assurance
Supporting the acquisition, Snowden Optiro has prepared an Independent Technical Assessment Report confirming the robustness of the 2.3 million ounce Mineral Resource estimate and the project’s development potential. The report highlights the project’s favourable geology, existing infrastructure, and exploration upside.
HLB Mann Judd has provided an Independent Limited Assurance Report on the historical and pro forma financial information, confirming the fair presentation of the financial data in the prospectus.
Outlook and Next Steps
Minerals 260’s board, led by Non-Executive Chairman Timothy Goyder and Managing Director Luke McFadyen, is confident in the company’s ability to execute the acquisition and deliver value to shareholders. The offer is conditional on shareholder approval at a general meeting, regulatory consents, minimum subscription, and ASX re-compliance.
Investors should monitor forthcoming ASX and shareholder approvals, the progress of exploration and development programs, and the company’s compliance with environmental and native title obligations as key indicators of the transaction’s advancement.
Bottom Line?
Minerals 260’s bold acquisition and equity raise set the stage for a new chapter as it aims to unlock Bullabulling’s potential and re-establish itself on the ASX.
Questions in the middle?
- Will Minerals 260 secure timely ASX re-admission and shareholder approvals to complete the acquisition?
- How will the market respond to the significant equity dilution from the $220 million raise?
- What are the potential impacts of ongoing native title claims and tenement grant challenges on project development?