Minerals 260 Wins Fresh Franco-Nevada Backing for Bullabulling

Minerals 260 Limited (ASX:MI6) has secured another $200 million from Franco-Nevada to help develop the 6.2Moz Bullabulling Gold Project in Western Australia, giving the gold developer a sizeable financing commitment without making the entire package dependent on an immediate equity issue. The arrangement includes $170 million in royalty funding and Franco-Nevada’s stated intention to subscribe for a further $30 million in a future equity raising.

Royalty Funding Expands Franco-Nevada’s Claim

Franco-Nevada Australia will pay the $170 million in exchange for an additional 1.45% gross royalty over Bullabulling’s defined Royalty Area. That lifts the aggregate royalty to 3.90% across the area, comprising a 2.90% royalty under the amended deed and a 1.00% historical royalty that predates Minerals 260’s ownership.

The royalty applies not only to the tenements containing the current Mineral Resource, but also to existing and future tenement interests held within a 10km surrounding area. Once cumulative gold production from the Royalty Area reaches 6Moz, the aggregate royalty is scheduled to fall to 2.75%, made up of a 1.75% royalty under the amended deed and the existing 1.00% historical royalty.

Future Equity Subscription Still Unpriced

The other $30 million is not yet a completed capital raising. Franco-Nevada has confirmed its intention to subscribe for that amount in a future equity issue, but the announcement does not disclose the issue price, structure, timing or resulting dilution. Minerals 260 remains in a trading halt while it prepares a separate announcement on the proposed raising.

That distinction matters. The royalty component provides capital without issuing shares, while the proposed subscription would still involve equity financing and therefore requires investors to assess the eventual price and dilution. The filing describes the package as supporting Bullabulling’s development, but does not set out a full project funding plan or state that the project is fully financed.

Bullabulling’s Resource Underpins the Deal

Bullabulling hosts a July 2026 JORC Mineral Resource of 190 million tonnes at 1.0 grams of gold per tonne for 6.2Moz, within granted mining leases. The project is described as a potential open-pit operation 25km west of Coolgardie and 65km from Kalgoorlie in Western Australia’s Eastern Goldfields.

The expanded arrangement takes Franco-Nevada’s total investment in Minerals 260 to $420 million, according to the company. Minerals 260 says this is Franco-Nevada’s largest commitment to an Australian project and among its ten largest investments globally, while Franco-Nevada chief executive Paul Brink said the company’s backing could play a “lynchpin role” in generating value for Minerals 260 shareholders. Those are statements from the parties, rather than an independent assessment of Bullabulling’s eventual economics.

Community Funding Adds a Smaller Partnership Element

Franco-Nevada will also contribute up to $100,000 each year for three years towards local community, education and environmental initiatives. The contribution is modest beside the project financing, but broadens the stated partnership beyond the royalty transaction itself.

The immediate catalyst is now the proposed equity-raising announcement. Until its terms are released, shareholders have the headline value of the $200 million package but not the information needed to measure the share issue’s dilution or the precise economics of the expanded royalty.