Minerals 260 clears a major funding hurdle for Bullabulling

$410 Million Debt Package Advances Bullabulling

Minerals 260 Limited (ASX:MI6) has secured credit-approved commitments for $410 million in debt facilities, giving its 100%-owned Bullabulling Gold Project a substantial funding pillar before the definitive feasibility study is complete. The company says the debt, combined with royalty funding from Franco-Nevada and proceeds from its recent equity raising, funds the project through to first production.

The package comprises a $335 million Project Finance Facility and a $75 million Working Capital Facility from ANZ, NAB and Societe Generale. It follows an independent technical expert report, lender due diligence and a competitive funding process. The announcement builds on the earlier Bullabulling funding package, which included equity and Franco-Nevada royalty funding.

Loan Terms Leave Commodity Hedging Optional

The project finance facility will run for seven years, amortise during its term and carry a bullet repayment at maturity. The working capital facility has a four-year term. Interest is to be capitalised during construction, while the fixed margin will be less than 3% above BBSY, the Bank Bill Swap Bid Rate used to price Australian debt.

Neither facility requires mandatory hedging of gold, foreign exchange or diesel prices. That gives Minerals 260 more flexibility than a structure requiring fixed commodity-price protection, although the announcement does not disclose the project's final capital cost, production profile or debt-service capacity.

Financial Close Still Depends on the DFS

The commitments remain conditional rather than equivalent to drawn debt. Minerals 260 must complete long-form finance documents, the DFS, final due diligence and an intercreditor deed with Franco-Nevada, alongside other customary conditions. Financial close is expected in the first quarter of calendar 2027, with first drawdown targeted for the end of 2027.

Bullabulling is a potential open-pit operation 65 kilometres from Kalgoorlie and holds a July 2026 mineral resource of 190 million tonnes at 1.0 grams per tonne gold for 6.2 million ounces. The company is still targeting a final investment decision in Q1 2027, following the 6.2Moz resource upgrade and the pre-feasibility work that preceded the current financing process.

Next Test Is Funding Completion

The debt commitments reduce one important uncertainty around Bullabulling, but they do not remove execution risk. The next disclosures should show whether the DFS supports the financing assumptions, how the project's capital requirements compare with the combined funding package, and whether all conditions can be satisfied in time for financial close.