Minerals 260 secures $155.5m funding for Bullabulling Gold Project

Core Viewpoint - Minerals 260 has secured a A$220 million ($155.53 million) funding agreement with Franco-Nevada Corporation to expedite the development of the Bullabulling Gold Project, enhancing its financial stability and reducing associated risks [1][3]. Funding Agreement Details - Franco-Nevada will pay A$170 million to increase its royalty on the Bullabulling project from 1% to 2.45% on certain tenements [2]. - The investment includes A$50 million for purchasing 111,111,111 shares in Minerals 260 at $0.45 per share, representing a 7% premium over the last closing price, resulting in a 4.9% stake in the company [2]. Project Development and Risk Mitigation - The funding will facilitate the acceleration of project development activities, including construction of accommodation facilities, procurement of materials, early site works, and commencement of definitive feasibility studies [4]. - The agreement includes an upfront payment of A$75 million due by February 26, 2026, and a contingent A$95 million based on obtaining necessary approvals [5]. Strategic Importance - The partnership with Franco-Nevada is viewed as a significant endorsement of the Bullabulling project, positioning it as one of the leading gold projects in Australia [4][6]. - Franco-Nevada's extensive due diligence supports the project's potential, highlighting its attractiveness in the gold development sector [4][6].