Franco‑Nevada Corporation has entered into a financing agreement with Minerals 260 Limited that will provide A$220 million in total funding, comprising an A$170 million gross royalty on the Bullabulling Gold Project in Western Australia and an A$50 million subscription for ordinary shares in Minerals 260.
The royalty purchase increases Franco‑Nevada’s stake in the project from 1.00 % to 2.45 % of the land package, covering all mineral resources and the area of interest. The equity investment gives Franco‑Nevada a direct ownership position in the Australian miner, marking its largest-ever royalty acquisition in Australia.
Minerals 260 will deploy the A$170 million royalty proceeds to accelerate the Bullabulling project, funding a definitive feasibility study, the construction of a 400‑room village, procurement of long‑lead items and early site works. The company aims to complete a prefeasibility study by mid‑2026, secure a final investment decision in early 2027 and achieve first gold production in the second half of 2028.
Bullabulling is a large and growing resource, with 3.0 million ounces of indicated gold (93 million tonnes at 1.0 g/t) and 1.5 million ounces of inferred gold (42 million tonnes at 1.1 g/t). The project’s scale and resource base make it one of Australia’s most attractive near‑term gold developments.
Franco‑Nevada’s financial position remains strong, with $0.9 billion in cash and $1.9 billion in available capital as of September 30, 2025. The company is debt‑free and reported record adjusted earnings per share of $1.43 in Q3 2025, driven by a 76.9 % revenue increase to $487.7 million and an adjusted EBITDA of $427.3 million, reflecting high operating leverage and cost discipline.
On February 23, 2026, Minerals 260 shares rose 23 % to A$0.52, reflecting investor confidence in the new funding package. Franco‑Nevada shares were up 2.3 % in early trading that day, underscoring market approval of the expanded exposure to the Bullabulling project.
"Bullabulling is a large and growing Resource and one of the most attractive gold development projects in Australia. After a full review by our team of the rapid and impressive progress made by Minerals 260, we are excited to increase our exposure to the Project. This represents Franco‑Nevada's largest ever royalty acquisition in Australia and adds to the extensive royalty coverage we have in the country. Our equity investment demonstrates our confidence in the Minerals 260 team's ability to deliver the Project and unlock value for shareholders. We look forward to a long‑term partnership with Minerals 260 for the development of Bullabulling and beyond." – Paul Brink, President & CEO, Franco‑Nevada
"Securing a A$220 million funding package with the world's leading gold royalty company at this stage of Bullabulling's development is a major endorsement of the project and a milestone that will allow us to accelerate the Project towards production, expand our exploration strategy and de‑risk our funding pathway." – Luke McFadyen, Managing Director, Minerals 260
The deal not only strengthens Franco‑Nevada’s presence in the Australian gold market but also provides Minerals 260 with the capital and credibility needed to move the Bullabulling project from feasibility to production, potentially unlocking significant upside for both companies.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.