Minerals 260 Secures $220M to Accelerate Bullabulling Gold Development

Franco-Nevada Deal Validates Bullabulling’s Potential

Minerals 260 Limited (ASX:MI6) has secured a $220 million strategic funding package from royalty giant Franco-Nevada, comprising $170 million in royalty funding and a $50 million equity investment. This deal not only injects significant capital but also signals Franco-Nevada’s confidence in Bullabulling as a leading gold development project in Australia. The equity investment came at a 7% premium to the last closing price, with Franco-Nevada now holding a 4.9% stake subject to escrow and market restrictions.

The royalty agreement grants Franco-Nevada a 2.45% gross royalty over the Bullabulling tenements and surrounding areas, providing the company with ongoing exposure to the project’s value. Proceeds were received in two tranches following Foreign Investment Review Board approval, enabling Minerals 260 to accelerate key development activities.

Drilling Expands Resource Beyond Current Estimates

Drilling continues to impress, with seven rigs operating across Bacchus, Phoenix, Dicksons, and Kraken deposits. Notably, mineralised lenses have been intersected outside the current Mineral Resource Estimate (MRE), highlighting potential for resource growth. For example, Bacchus drilling returned high-grade hits including 7m at 12.7 g/t Au and 28m at 1.7 g/t Au, while Phoenix extended deeper lodes with intersections such as 10m at 2.8 g/t Au.

Since acquiring Bullabulling in April 2025, Minerals 260 has completed nearly 149,000 metres of drilling, exceeding the originally planned 80,000 metres. This expanded program is set to feed into an updated MRE scheduled for August 2026, following the release of the Pre-Feasibility Study (PFS) and maiden Ore Reserve in July. These milestones will underpin the Definitive Feasibility Study (DFS) expected in early 2027. This drilling momentum builds on the company’s earlier strong drilling results and resource expansion efforts.

Accelerated Project Development and Infrastructure Planning

With the Franco-Nevada funding secured, Minerals 260 is fast-tracking multiple development workstreams. Early works planning, infrastructure studies, water development, and metallurgical programs have commenced. The company is progressing design and engineering of the processing plant with GR Engineering, aiming for a scalable and capital-efficient configuration.

Notably, a Mining Development and Closure Plan has been submitted for a 400-room accommodation village, with contract awards imminent. Competitive bids have been received from mining contractors, reflecting strong industry interest. The company has also bolstered its internal capabilities by appointing experienced executives including Mark Muller as General Manager Geology and Courtney Morgan-Evans as Chief People & Communications Officer.

Financial Position and Corporate Updates

Minerals 260 ended the quarter with approximately $250 million in cash and term deposits, bolstered by the Franco-Nevada funding inflows. Operating cash flows were broadly neutral, with exploration expenditure of $9 million during the quarter. The company remains on track to meet its development timelines aiming for first gold production by the end of 2028.

Board changes included the appointment of Adam Smits as a Non-Executive Director, bringing over 30 years of mining industry experience. Committee leadership was also refreshed, with Emma Scotney and Stacey Apostolou assuming chair roles of the Remuneration and Nomination Committee and Audit and Risk Committee respectively.

Resource Base and Project Scale

Bullabulling hosts a substantial Mineral Resource Estimate of 130 million tonnes at 1.0 g/t gold for 4.5 million ounces, spread across five deposits within an 807 square kilometre tenement package. The resource is reported above a 0.4 g/t cut-off within a A$4,500/oz pit shell. The company is targeting resource conversion from Inferred to Indicated categories, particularly in areas supporting early mine production.

The extensive drilling and ongoing exploration programs aim to further define high-grade zones and depth extensions, which could enhance project economics and mine life. This follows the company’s previous resource doubling announcement and steady progress towards a maiden Ore Reserve, as detailed in earlier updates including resource upgrade plans.