Minerals 260 Launches $250M Raise to Push 6.2Moz Bullabulling Gold Mine to Build
Key Takeaways
- Minerals 260 (ASX: MI6) has received firm commitments for a $250 million two-tranche placement at $0.88 per share, representing nil discount to the last closing price and a 3.5% premium to the 10-day VWAP of $0.85.
- Franco-Nevada Corporation anchored the raise with a $30 million cornerstone commitment, alongside a separate $170 million royalty funding arrangement announced 14 September 2026 in exchange for an additional 1.45% royalty over the Bullabulling project.
- Pro-forma cash of approximately $633 million — combining existing cash of $183 million, placement proceeds, the SPP maximum of $30 million, and Franco-Nevada royalty funding — leaves the company with no borrowings or debt on a pro-forma basis.
- The $855 million pre-production capital estimate from the July 2026 PFS leaves a funding gap expected to be covered by project finance debt, with multiple non-binding indicative term sheets already received that would exceed the remaining requirement.
- A Final Investment Decision is targeted for Q1 CY2027, with Tranche 1 settlement expected 22 September 2026 and a General Meeting to approve Tranche 2 scheduled for late October 2026.
$250 million placement funds Bullabulling’s path to production
Minerals 260 (ASX: MI6) has received firm commitments to raise $250 million through a two-tranche placement to institutional and sophisticated investors, with proceeds earmarked for development of the 6.2Moz Bullabulling Gold Project located 65km west of Kalgoorlie in Western Australia.
The placement issue price is $0.88 per new share, representing nil discount to the 11 September 2026 closing share price and a 3.5% premium to the 10-day VWAP of $0.85. Cornerstone support came from Franco-Nevada Corporation, which committed $30 million, alongside strong demand from existing and new domestic and international institutional investors.
Eligible shareholders will also have the opportunity to participate in a Share Purchase Plan (SPP), applying for up to $30,000 worth of shares each at $0.88 per share, with the Company targeting up to $30 million in additional proceeds. Directors of Minerals 260 intend to participate in the SPP.
Luke McFadyen, Managing Director
“On behalf of the Board, I thank all our shareholders, both existing and new, who continue to support Minerals 260 through participation in this capital raising. This capital raising, in conjunction with the additional Franco-Nevada royalty funding announced earlier this week, has significantly strengthened and de-risked the Company’s balance sheet so that development activities can continue on the accelerated timeline. Together with the indicative project financing terms we’ve received, we are targeting to be fully funded ahead of the planned Final Investment Decision in early 2027.”
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Funding stack: How $633 million gets Bullabulling to the build phase
On a pro-forma basis, the placement and SPP combine with existing cash and a separate Franco-Nevada royalty funding arrangement to deliver a total pro-forma cash position of approximately $633 million. The Franco-Nevada royalty funding of $170 million is a separate transaction announced on 14 September 2026, provided in exchange for an additional 1.45% royalty over the Project.
| Source | Amount |
|---|---|
| Existing cash (as at 14 September 2026) | $183 million |
| Placement proceeds (before costs) | $250 million |
| SPP proceeds (maximum) | $30 million |
| Franco-Nevada royalty funding | $170 million |
| Total pro-forma cash | ~$633 million |
On a pro-forma basis, the Company carries no borrowings or debt.
The pre-feasibility study (PFS), announced 8 July 2026, estimated total pre-production capital of $855 million. The gap between the ~$633 million pro-forma cash position and that requirement is expected to be funded through traditional project finance (debt).
Minerals 260 has received multiple non-binding indicative term sheets for project finance facilities which, if progressed and implemented on their proposed terms, would exceed the currently estimated remaining funding requirement. The Company expects the project financing process to align with the timing of the Board’s Final Investment Decision in Q1 CY2027.
What is a two-tranche placement — and why does the structure matter?
An ASX placement is a capital raise in which new shares are issued directly to institutional and sophisticated investors, rather than to the general public. A two-tranche structure splits that raise into two sequential tranches, and understanding why that matters helps investors assess timing and execution risk.
The Minerals 260 placement is structured as follows:
-
Tranche 1 ($178.9 million, 203,291,499 shares) — unconditional, using the Company’s existing ASX Listing Rule 7.1 placement capacity. Settlement is expected on 22 September 2026, with the new shares commencing trading on 23 September 2026.
-
Tranche 2 ($71.1 million, 80,799,411 shares) — conditional on shareholder approval at a General Meeting expected to be held in late October 2026.
The logic is straightforward. Tranche 1 can be settled immediately because it falls within the Company’s existing placement capacity under ASX Listing Rules — no shareholder vote required. Tranche 2 requires shareholder approval before those shares can be issued, maintaining governance compliance whilst still locking in firm commitments from investors now.
The SPP runs alongside the institutional placement and gives existing eligible shareholders (those with a registered address in Australia or New Zealand, outside the United States) the chance to participate at the same $0.88 issue price, for up to $30,000 per shareholder, with no brokerage or transaction costs. The SPP Booklet is expected to be released to ASX and despatched to eligible shareholders on or around Monday, 28 September 2026.
Retail participants are not being disadvantaged here. The issue price represents nil discount to the last closing share price and a 3.5% premium to the 10-day VWAP. Directors of Minerals 260 intend to participate in the SPP.
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Bullabulling at a glance: The asset behind the capital raise
The Bullabulling Gold Project is a potential open pit mining operation located 25km west of Coolgardie (65km west of Kalgoorlie) in the Eastern Goldfields region of Western Australia, situated on granted mining leases.
The Minerals 260 gold focus sharpened considerably following the company’s divestment of lithium assets, leaving Bullabulling as the clear centrepiece of its development strategy and the primary target for institutional capital allocation.
The project hosts a JORC 2012 Mineral Resource Estimate of 190Mt @ 1.0g/t Au for 6.2Moz of gold, effective 8 July 2026. The resource spans five deposits:
- Dicksons: 660koz
- Phoenix: 2,300koz
- Bacchus: 2,400koz
- Kraken: 540koz
- Gibraltar: 290koz
The PFS, announced 8 July 2026, underpins the $855 million pre-production capital estimate and establishes the basis on which the Company is advancing towards a development decision. The scale and grade of the resource base provides the context for why the placement attracted cornerstone institutional backing, including the Franco-Nevada commitment.
Key milestones and indicative timetable
- 15 September 2026 — SPP Record Date (5:00pm AEST)
- 16 September 2026 — Announcement of Placement and SPP; trading halt lifted
- 22 September 2026 — Tranche 1 settlement
- 23 September 2026 — Tranche 1 shares commence trading
- 28 September 2026 — SPP Booklet released to ASX and despatched to eligible shareholders; SPP opens
- Late September 2026 — Release of General Meeting Notice of Meeting to ASX and despatch to shareholders
- 19 October 2026 — SPP closes
- 23 October 2026 — SPP results announced; allotment of SPP Shares
- 24 October 2026 — Commencement of trading of SPP Shares
- Late October 2026 — General Meeting to approve Tranche 2; Tranche 2 settlement and commencement of trading
- Q1 CY2027 — Targeted Final Investment Decision
The timetable is indicative only and subject to change at the Company’s discretion in compliance with applicable law and ASX Listing Rules.
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