Franco-Nevada Announces A$220 Million Financing Package with Minerals 260 for the Bullabulling Gold Project

Executive Summary

• Franco‑Nevada is acquiring a A$170 million (≈US$120 M) gross royalty on the Bullabulling Gold Project and subscribing for A$50 million (≈US$35 M) of ordinary shares in Minerals 260, creating an A$220 million financing package.
• The transaction raises Franco‑Nevada’s royalty interest to a 2.45 % gross royalty over the Bullabulling land package and gives it ~4.9 % equity ownership of Minerals 260.
• Upfront cash proceeds: A$75 M at closing (≈US$53 M) plus a further A$95 M upon FIRB approval; equity purchase price is A$0.45 per share for 111,111,111 shares.

Key Details

• Royalty Acquisition
• Gross royalty purchased: A$170 M (≈US$120 M).
• Up‑front cash payment: A$75 M (≈US$53 M) at closing; second tranche A$95 M (≈US$67 M) upon FIRB approval.
• Total royalty interest after transaction: 2.45 % gross royalty (1.00 % existing + 1.45 % additional on existing tenements + new 2.45 % on previously un‑royalized tenements).
• Step‑down provision: royalties reduce to 1.63 % after production of 4 Moz Au from the royalty lands.

• Right of first refusal retained on future streams/royalties related to the Royalty properties.

• Equity Participation

• Shares subscribed: 111,111,111 ordinary shares of Minerals 260 at A$0.45 per share.
• Total equity consideration: A$50 M (≈US$35 M).

• Post‑closing ownership: ~4.9 % of Minerals 260’s issued and outstanding shares.

• Financing Source

• Franco‑Nevada will fund the transaction from cash on hand; as of Sep‑30‑2025 it held US$0.9 B in cash & equivalents and US$1.9 B of available capital.

• Project Context – Bullabulling Gold Project

• Location: ~65 km east of Kalgoorlie, WA (Eastern Goldfields).
• Resources: 3.0 Moz Indicated (93 Mt @ 1.0 g/t Au) and 1.5 Moz Inferred (42 Mt @ 1.1 g/t Au).
• Development timeline: Pre‑feasibility study targeted mid‑2026; final investment decision early 2027; first production possible H2 2028.

• Expected throughput: 7–8 Mtpa in phased development, based on Franco‑Nevada’s review of historic studies.

• Strategic Rationale

• Largest royalty acquisition by Franco‑Nevada in Australia, expanding exposure to a near‑term gold project.
• Equity stake aligns interests with Minerals 260 and provides additional upside if the project advances to production.

Notable Quotes

• “This represents Franco‑Nevada's largest ever royalty acquisition in Australia… Our equity investment demonstrates our confidence in the Minerals 260 team's ability to deliver the Project and unlock value for shareholders.” – Paul Brink, President & CEO, Franco‑Nevada.
• “Securing a A$220 million funding package … will allow us to rapidly accelerate the Project towards production, while also substantially de‑risking our development funding pathway.” – Luke McFadyen, Managing Director, Minerals 260.