Toronto – September 16, 2026 -- Franco-Nevada Corporation has agreed to a A$200 million (approximately $144 million) follow-on financing package with Minerals 260 Limited to advance the Bullabulling Gold Project in Western Australia, lifting its total backing of the project to an aggregate A$420 million (approximately $300 million).
The package comprises a A$170 million (approximately $122 million) gross royalty acquisition and a A$30 million (approximately $22 million) equity subscription as lead order in a future Minerals 260 capital raise.
Royalty stake rises to 3.90% as area of interest expands to 650 km2
The new royalty increases Franco-Nevada's existing 2.45% gross royalty over Bullabulling to 3.90%, while the area of interest around the project's boundary expands from 2.5 km to 10 km, covering roughly 650 km2. The royalty's step-down production threshold rises from 4 million ounces to 6 million ounces, after which the rate falls from 3.90% to 2.75%.
Second financing round follows A$220 million package from February 2026
Franco-Nevada previously provided Minerals 260 with a A$220 million (approximately $155 million) financing package in February 2026, which supported resource growth and a rise in Minerals 260's share price. The company intends to fund the new transactions from cash on hand; it held $1.0 billion in cash and $4.3 billion in available capital as of June 30, 2026.
Bullabulling holds 4.4 Moz indicated resources after July 2026 upgrade
Bullabulling, located about 65 km from Kalgoorlie in Western Australia's Eastern Goldfields, holds 4.4 Moz Indicated Resources (140 Mt at 0.98 g/t) and 1.7 Moz Inferred Resources (51 Mt at 1.0 g/t) following a July 2026 upgrade. A pre-feasibility study completed the same month outlines Stage 1 throughput of 5 Mtpa, with design provisions for expansion to 7.5 Mtpa, targeting average annual production of approximately 150 koz over the first 10 years across a 19-year mine life. Franco-Nevada sees potential for throughput to expand in phases to 7-8 Mtpa, aligning with Minerals 260's indicative Stage 2 plan of 200 koz per annum.
Definitive feasibility study and final investment decision expected early 2027
Minerals 260 expects to complete a definitive feasibility study and reach a final investment decision in early 2027, with first gold production potentially as soon as H2 2028. The royalty covers the Phoenix, Bacchus, Dicksons and Kraken deposits spanning 8.5 km of strike-length, plus the Gibraltar deposit on a sub-parallel trend.
Paul Brink, President & CEO of Franco-Nevada, said the Bullabulling orebody and the Minerals 260 team continue to exceed expectations, noting the company is ahead of schedule on project development and financing.
Minerals 260 is chaired by Tim Goyder, who also chairs Liontown Limited, operator of the Kathleen Valley Lithium mine in Western Australia. The company is led by Managing Director Luke McFadyen, who previously held senior roles at OZ Minerals, Syrah Resources, South32 and BHP.