Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Minerals 260 Secures AU$420 Million Funding for Bullabulling Gold Project
Highlights:
Minerals 260 Strengthens Funding Position
Minerals 260 Limited (ASX: MI6) released its September 2026 Quarterly Activities Report on 27 October 2026, outlining continued progress at its wholly owned Bullabulling Gold Project in Western Australia. Located approximately 65 kilometres from Kalgoorlie, the project contains a reported Mineral Resource Estimate of 6.2 million ounces of gold. Minerals 260 Limited last reported market price: AU$0.770, up AU$0.060 or 8.45%.
During the quarter, the company secured AU$420 million in funding, comprising an additional AU$170 million royalty agreement with Franco-Nevada and a two-tranche equity placement of AU$250 million, including Franco-Nevada's AU$30 million cornerstone investment. The latest funding brings Franco-Nevada's total investment in Minerals 260 to AU$420 million.
The first tranche of the placement raised approximately AU$178.9 million before costs. The second tranche is expected to raise a further AU$71.1 million, subject to shareholder approval at the company's general meeting scheduled for 30 October 2026. Minerals 260 reported a pro forma cash balance of approximately AU$600 million, including the relevant placement and share purchase plan proceeds.
The company expects traditional project financing to fund the remaining capital required to bring Bullabulling into production.
Bullabulling Development Progresses
The company expects to complete its Definitive Feasibility Study (DFS) in the first quarter of 2027, paving the way for a planned Final Investment Decision (FID). The expanded mining lease has been granted, while the remaining approvals required before construction are under assessment by the relevant Western Australian government departments.
Construction of the project's accommodation village, named Champions Rest, is progressing. The board has approved an additional 200 rooms, increasing planned capacity to 600 rooms. The expanded facilities are scheduled to become operational by March 2027. Water infrastructure work is also advancing, with 22 bores installed across the project.
Geotechnical testing for the DFS has been completed, with results expected to support improved pit wall angles in fresh rock compared with the Pre-Feasibility Study. Metallurgical testing continues to indicate gold recoveries consistent with previous assumptions.
Drilling Results Support Resource Confidence
Minerals 260 completed an initial grade-control drilling programme covering approximately 25,970 metres across the Phoenix North and South areas. Preliminary analysis indicated that overall gold grades and mineralised intersections correlated well with the existing resource model.
Drilling also identified high-grade gold intervals, including 1.1 metres at 290 grams per tonne of gold at Bacchus and seven metres at 10.9 grams per tonne at Phoenix. Further drilling is planned to assess the continuity and significance of higher-grade zones. The company also acquired 367 square kilometres of additional tenure, expanding the total Bullabulling project area to 1,527 square kilometres.
Outlook
Minerals 260 enters the next development phase with substantial funding, expanding project tenure and continued technical work at Bullabulling. The company remains focused on completing the DFS, progressing outstanding approvals and advancing early construction activities ahead of its targeted investment decision in the first quarter of 2027. However, the timing of development remains subject to financing, regulatory approvals and other project-related risks. Note: All data presented is based on information available at the time of writing.
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