Highlights

  • Minerals 260 has executed a binding credit-approved commitment letter and term sheet for $410 million in total Debt facilities.
  • The package includes a $335 million seven-year Project Finance Facility and a $75 million four-year Working Capital Facility.
  • The debt facilities carry competitive terms, including no mandatory gold price hedging and an Interest Rate less than 3% above BBSY.
  • The combination of debt, Royalty funding and recent Equity raises fully funds Bullabulling to first production, with a Final Investment Decision targeted for Q1 2027.

Minerals 260 Limited (ASX:MI6) has announced a significant financing milestone for its Bullabulling Gold Project, with credit-approved commitments secured for $410 million in debt facilities. The funding has been arranged with a syndicate of three leading financial institutions and covers both a large project finance component and a working capital facility. The achievement of credit-approved commitments prior to completion of the Definitive Feasibility Study is considered a notable endorsement of the project's underlying merits.

The Bullabulling Gold Project is a potential open pit Mining operation situated in the Eastern Goldfields region of Western Australia, approximately 65km from the established mining centre of Kalgoorlie. The project hosts a large Mineral Resource Estimate covering several deposits across granted mining leases, providing a substantial resource base for the planned development.

Details of the Debt Facilities

The debt package comprises two distinct facilities. The Project Finance Facility of $335 million carries a seven-year term with an amortising structure and a Bullet Repayment at maturity, while the Working Capital Facility of $75 million has a four-year term. Both facilities feature an interest rate of less than 3% above the Bank Bill Swap Bid Rate, described by management as highly competitive in the current market environment. Notably, the arrangements do not require mandatory gold price, foreign exchange or diesel price hedging, which preserves the company's ability to benefit from favourable Commodity price movements.

Interest is to be capitalised during the construction period, reducing the cash outflow burden during the development phase. The commitment letter and term sheet have been executed, with the parties now working towards satisfying customary conditions precedent for financial close, including completion of the Definitive Feasibility Study, final Due Diligence and execution of long-form documents.

Pathway to Production and Project Background

With the debt facilities in place alongside royalty funding from Franco-Nevada and proceeds from a recent equity raising, the company considers Bullabulling fully funded through to first production. The Definitive Feasibility Study and Final Investment Decision remain on track for completion in the first quarter of 2027. Financial close for the debt facilities is also anticipated around that time, with the first drawdown expected towards the end of calendar year 2027.

The Bullabulling Gold Project has a Mineral Resource of 190 million tonnes grading 1.0 grams per tonne gold for 6.2 million ounces across five deposits on granted mining leases. The project is located in an established and infrastructure-rich mining region, which supports the feasibility of development. Independent technical expert reports, due diligence and a competitive process preceded the commitments from the lending institutions, reflecting the thoroughness of the assessment.

Management Perspective and Development Outlook

Minerals 260's Managing Director Luke McFadyen described the financing outcome as a key pillar of the company's strategy to bring Bullabulling into production. He noted that securing credit-approved terms before the Definitive Feasibility Study is complete, through what was described as a highly competitive debt funding process, reflects the high-quality, long-life and high-margin potential attributes of the project.

The focus now shifts to completing the Definitive Feasibility Study in line with the targeted timeline. The project's combination of a large resource base, existing mining leases, a competitive financing structure and the involvement of well-regarded financial counterparts positions Bullabulling as one of the more advanced gold development projects in the Australian pipeline. The absence of mandatory hedging requirements is likely to be of particular interest to market observers monitoring the project's exposure to gold price movements.

Key Insights

The achievement of credit-approved debt commitments totalling $410 million, prior to Definitive Feasibility Study completion, represents a material de-risking milestone for the Bullabulling Gold Project. The favourable financing terms — including no mandatory hedging and a competitive interest Margin — enhance the project's economic flexibility. With royalty and equity funding in place alongside the debt, the project is now described as fully funded through to first production. The Final Investment Decision, targeted for Q1 2027, will be the next significant inflection point. Minerals 260's progress reflects increasing investor and lender confidence in the viability of the Bullabulling development.