Minerals 260 Lands $200M More From Franco-Nevada Lifting Total to $420M
Key Takeaways
- Franco-Nevada has committed an additional $200 million to Minerals 260, lifting its total investment in the Bullabulling Gold Project to $420 million — Franco-Nevada's largest ever commitment to an Australian project and one of its ten largest globally.
- The $200 million package comprises $170 million in royalty funding, increasing Franco-Nevada's aggregate gross royalty to 3.90% across the Royalty Area, plus a stated intention to subscribe for $30 million in a future equity raising.
- The Bullabulling Gold Project hosts a JORC 2012 Mineral Resource of 190 million tonnes at 1.0 g/t gold for 6.2Moz across five deposits, located 65km from Kalgoorlie on granted mining leases.
- Franco-Nevada's CEO Paul Brink stated the Minerals 260 team and Bullabulling orebody have "surpassed expectations" and that the company is ahead of schedule on both project development and financing.
- Minerals 260 remains in a trading halt as of 14 September 2026 pending a separate announcement on a proposed equity raising, with Franco-Nevada's $30 million equity intention providing relevant but non-binding context.
$200 million boost takes Franco-Nevada’s total Bullabulling commitment to $420 million
Minerals 260 has signed an additional $200 million funding package with Franco-Nevada Corporation, the world’s largest royalty company with a market capitalisation of approximately US$50 billion. The deal takes Franco-Nevada’s total investment in Minerals 260 to $420 million since its initial $220 million commitment in February 2026, representing Franco-Nevada’s largest ever commitment to a project in Australia and one of its largest ten investments globally.
The funding supports development of the 6.2 million ounce (Moz) Bullabulling Gold Project, located 65km from Kalgoorlie in Western Australia. At this scale of institutional backing, the signal to the market is hard to ignore.
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How the $200 million funding package is structured
The $200 million package has two distinct components:
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Component 1 — Royalty funding ($170 million): Franco-Nevada Australia pays $170 million to increase its gross royalty over the Bullabulling Project by 1.45%, lifting the aggregate royalty to 3.90% across the Royalty Area. In the Tenement Area, the 3.90% aggregate comprises a 2.90% royalty under the Royalty Deed plus a 1.00% historical royalty that predates Minerals 260’s ownership of Bullabulling. Once cumulative gold production from the Royalty Area reaches 6Moz, the aggregate royalty reduces from 3.90% to 2.75% (comprising a 1.75% royalty under the Royalty Deed plus the existing 1.00% historical royalty).
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Component 2 — Equity intention ($30 million): Franco-Nevada has confirmed its intention to subscribe for $30 million in a future equity raising. This is a stated intention, not a binding commitment.
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Community contribution: Franco-Nevada will contribute up to $100,000 per year for three years toward local community, education, and environmental initiatives.
What is a gold royalty and why does it matter for MI6 shareholders?
A gold royalty is a financial interest in a mine where the holder receives a percentage of revenue from gold sales once the mine is operational. In exchange for that future income stream, the royalty holder provides capital to the developer today.
For Minerals 260 shareholders, royalty financing carries several specific advantages over other funding structures:
- Non-dilutive capital: Royalty financing raises funds without issuing new equity, preserving existing shareholders’ proportional ownership (beyond the separately stated $30 million equity intention).
- Operational control: A royalty does not impose production obligations or affect how the mine owner operates the project.
- Balance sheet flexibility: Royalty funding improves the company’s financial position without adding debt-style obligations tied to production targets.
- Accelerated timelines: Access to capital at this scale can bring development milestones forward rather than waiting on alternative financing.
Luke McFadyen, Managing Director, Minerals 260
“…Securing this level of support from Franco Nevada, a ~$50 billion market cap company and the largest royalty company in the world, further endorses Bullabulling as one of Australia’s leading gold development projects…”
Bullabulling by the numbers: a 6.2Moz asset with institutional backing
The Bullabulling Gold Project is a potential open pit mining operation located 25km west of Coolgardie in the Eastern Goldfields region of Western Australia, on granted mining leases. It hosts a JORC 2012 Mineral Resource Estimate of 190 million tonnes (Mt) at 1.0 grams per tonne (g/t) gold for 6.2Moz, as of 8 July 2026.
The resource spans five deposits, as detailed below.
| Deposit | Indicated | Inferred | Total Resource | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Tonnes (Mt) | Grade (g/t) | Au Metal (koz) | Tonnes (Mt) | Grade (g/t) | Au Metal (koz) | Tonnes (Mt) | Grade (g/t) | Au Metal (koz) | |
| Dicksons | 17 | 0.93 | 500 | 5.5 | 0.94 | 170 | 22 | 0.93 | 660 |
| Phoenix | 62 | 0.94 | 1,900 | 12 | 1.0 | 390 | 74 | 0.95 | 2,300 |
| Bacchus | 55 | 1.0 | 1,800 | 17 | 1.1 | 580 | 72 | 1.0 | 2,400 |
| Kraken | 4.8 | 1.1 | 170 | 11 | 1.1 | 370 | 16 | 1.1 | 540 |
| Gibraltar | 2.3 | 1.0 | 77 | 6.2 | 1.1 | 220 | 8.5 | 1.1 | 290 |
| Total | 140 | 0.98 | 4,400 | 51 | 1.0 | 1,700 | 190 | 1.0 | 6,200 |
Mineral Resources reported above a cut-off grade of 0.35 g/t Au inside an A$5,250/oz pit shell. Effective reporting date: 8 July 2026.
Franco-Nevada’s own assessment of the project is pointed. Paul Brink, President and Chief Executive Officer of Franco-Nevada Corporation, said:
Paul Brink, President & CEO, Franco-Nevada Corporation
“Both the team at Minerals 260 and the Bullabulling orebody continue to surpass our expectations. The Company is ahead of schedule on project development and financing and has rapidly grown its resource endowment…”
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What comes next for Minerals 260
Minerals 260 remains in a trading halt as of 14 September 2026, pending a further announcement regarding a proposed equity raising. The trading halt was requested on that date specifically to accommodate announcements on both the expanded Franco-Nevada funding package and the proposed equity raising — this announcement addresses the former.
Franco-Nevada’s stated intention to subscribe for $30 million in that future raising is relevant context, though investors should note this remains an intention rather than a binding commitment. Further detail on the proposed equity raising is expected to follow in a separate announcement.
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