Minerals 260 has secured a A$220m ($155.53m) funding agreement with Franco-Nevada Corporation aiming at speeding up and reducing risks in the development of the 4.5moz Bullabulling Gold Project, situated 65km from Kalgoorlie in Western Australia (WA).

The arrangement involves Franco-Nevada Australia, a subsidiary of Franco-Nevada, increasing its royalty over the project and investing in company shares.

Franco-Nevada will pay A$170m to elevate its royalty on the Bullabulling project to 2.45% from the existing 1% on certain tenements.

Additionally, it plans to invest A$50m by purchasing 111,111,111 fully paid ordinary shares in Minerals 260 at $0.45 per share, a 7% premium over the company’s last closing price.

This investment will result in Franco-Nevada holding a 4.9% stake in Minerals 260.

Minerals 260 managing director Luke McFadyen said: “Securing a A$220m funding package with the world’s leading gold royalty company at this early stage of Bullabulling’s development is a major endorsement of the project and a milestone that will allow us to accelerate the project towards production, expand our exploration strategy and de-risk our funding pathway.

“Franco-Nevada is an existing royalty holder and expanding our relationship with this financing is highly value accretive relative to other available funding options. Their extensive due diligence across all areas of the project validates Bullabulling as one of the leading gold projects in Australia.”

These funds are intended to reduce risks and accelerate project development activities including the construction of accommodation facilities, procurement of materials, initiation of early site works, commencement of definitive feasibility study activities and expansion of drilling programmes.

The royalty deed between Minerals 260 and Franco-Nevada includes an upfront payment of A$75m due on 26 February 2026 and a subsequent A$95m contingent on obtaining relevant approvals.

The agreement encompasses royalties based on gold production prices and provides Franco-Nevada with specific rights regarding future financial arrangements with Minerals 260.

Franco-Nevada will secure a mortgage over the project’s tenements, pending Foreign Investment Review Board approval.

Franco-Nevada president and CEO Paul Brink said: “Bullabulling is a large and growing orebody and one of the most attractive gold development projects in Australia. After a full review by our team of the rapid and impressive progress made by Minerals 260, we are excited to increase our exposure to the project.”

Greenhill served as the financial adviser for Minerals 260, while Allens provided legal advice for the transaction.

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In May 2025, Minerals 260 signed a binding agreement with Delta Lithium to sell its Aston lithium-rare earth elements project tenements in the Gascoyne region of WA.

"Minerals 260 secures $155.5m funding for Bullabulling Gold Project" was originally created and published by Mining Technology, a GlobalData owned brand.

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