Minerals 260 Secures $155.5M Funding for Bullabulling Gold Project
By John Nada·Feb 24, 2026·5 min read
Minerals 260 secures $155.5 million funding from Franco-Nevada to propel the Bullabulling Gold Project, enhancing its development prospects and financial stability.
Minerals 260 has secured a funding agreement of A$220 million ($155.5 million) with Franco-Nevada Corporation to expedite development of the Bullabulling Gold Project in Western Australia. This strategic partnership aims to reduce risks and enhance the project's potential, which is located 65 kilometers from Kalgoorlie. Franco-Nevada will increase its royalty stake in the project and invest in company shares, demonstrating a strong endorsement of Bullabulling's prospects.
The Bullabulling Gold Project is notable not only for its location but also for its substantial gold resource. With an estimated 4.5 million ounces of gold, the project is considered one of the most promising gold development endeavors in Australia. The partnership with Franco-Nevada, a leading player in the gold royalty space, is pivotal in bolstering the project's development trajectory while minimizing financial risks associated with exploration and production.
As part of the agreement, Franco-Nevada will elevate its royalty on the project to 2.45% from the current 1% on selected tenements, alongside a $50 million investment in Minerals 260 through share purchases. This investment allows Franco-Nevada to acquire a 4.9% stake in the company, signaling confidence in the project's future. Luke McFadyen, Minerals 260's managing director, emphasized that securing this funding at such an early stage is a significant milestone, facilitating the project's acceleration towards production and a broader exploration strategy.
The funds will be utilized for critical project activities, including constructing accommodation facilities, procuring materials, and starting early site works. Additionally, a definitive feasibility study and expanded drilling programs are on the agenda. The agreement includes an upfront payment of A$75 million due shortly and a contingent payment of A$95 million based on obtaining necessary approvals. Franco-Nevada's increasing involvement underscores the project's potential as one of the leading gold developments in Australia, providing Minerals 260 with a more secure financial pathway.
Minerals 260's collaboration with Franco-Nevada is particularly noteworthy given the latter's established reputation in the mining industry. Franco-Nevada Corporation is recognized as a premier gold royalty and streaming company with a diversified portfolio of high-quality assets. Their decision to invest in the Bullabulling project reflects a thorough evaluation of its viability and long-term value. As Franco-Nevada’s president and CEO, Paul Brink, stated, “Bullabulling is a large and growing orebody and one of the most attractive gold development projects in Australia.” This endorsement from a leading industry figure further validates the strategic direction Minerals 260 is taking.
The funding agreement not only enhances Minerals 260's financial position but also strategically positions the company within the competitive landscape of the mining sector. The A$220 million funding package allows for an ambitious timeline focused on moving the Bullabulling project towards production, which is critical in a market that demands timely resource delivery. The injection of capital will facilitate the construction of necessary infrastructure, including accommodation facilities for workers, which is essential for the operational efficiency of the project.
Moreover, the financial backing will support the procurement of materials necessary for the development phase. This is crucial as any delays in material acquisition could hinder project timelines and escalate costs. The early site works will lay the groundwork for future activities and ensure that the project remains on track to meet production goals.
In addition to physical development, the funding will enable Minerals 260 to commence a definitive feasibility study—a comprehensive assessment that will evaluate the technical and economic feasibility of the project. This study is a critical step in ensuring that the project is not only viable but also profitable. Expanding drilling programs will also be a priority, allowing the company to further delineate the resource and potentially increase the gold resource estimate, which could enhance the project's overall value.
The agreement also stipulates that Franco-Nevada will secure a mortgage over the project’s tenements, pending Foreign Investment Review Board approval. This mortgage arrangement is an important financial instrument that adds an additional layer of security for Franco-Nevada, as it provides them rights over the project's assets in the case of any financial distress.
Furthermore, the royalty deed between Minerals 260 and Franco-Nevada includes royalties based on gold production prices, which could yield substantial returns for Franco-Nevada as the project progresses. This arrangement aligns both parties' interests, ensuring that both benefit from the successful development and operation of the Bullabulling Gold Project.
Minerals 260’s partnership with Franco-Nevada comes at a time when investor interest in gold mining is revitalizing due to fluctuating economic conditions and macroeconomic uncertainties. Gold is often viewed as a safe-haven asset during periods of high volatility, and the increased gold prices in recent years have led to a resurgence in mining investments. By securing funding from a reputable partner like Franco-Nevada, Minerals 260 is effectively positioning itself to capitalize on this market trend.
Furthermore, the collaborative nature of this agreement reflects a broader trend in the mining industry where strategic partnerships and equity investments are becoming increasingly common. Companies, particularly juniors, are recognizing the importance of securing financial backing from established players to navigate the complexities of project development. This trend not only mitigates risks but also enhances the credibility of emerging mining projects, as seen in the case of Bullabulling.
As the Bullabulling Gold Project moves forward, the implications of this funding will be closely watched by industry analysts and investors alike. The successful execution of the project has the potential to significantly impact gold supply dynamics in Australia, particularly given the country's status as one of the top gold producers globally. The advancements made at Bullabulling could set a precedent for other mining projects aiming to attract similar funding arrangements.
With this funding, the Bullabulling project is poised to advance significantly, potentially impacting gold supply dynamics and investor interest in the Australian mining sector. The strategic partnership with Franco-Nevada not only enhances the project's development prospects but also signals a new era for Minerals 260, as it embarks on a journey towards becoming a key player in the gold mining industry.