Minerals 260 (ASX:MI6) Managing Director and CEO Luke McFadyen told a BMO conference audience that the Australian-listed gold developer has undergone a “transformational year,” driven by rapid progress at its Bullabulling Gold Project in Western Australia and a newly announced strategic funding agreement with Franco-Nevada.
McFadyen said the company is aiming to become a leading mid-tier gold mining company by advancing Bullabulling, which he described as one of Australia’s largest undeveloped gold projects. He also emphasized that, despite recent momentum, Minerals 260 has only owned the asset for about 10 months.
Market value growth and investor support
He linked part of the company’s development to an AUD 220 million equity raise completed last year, which he said attracted “many high-quality domestic and international investors.” McFadyen described the raise as a record on the ASX, saying no company had previously raised seven times its market capitalization.
Franco-Nevada deal: royalty and equity funding package
McFadyen said the company announced a “transformational” AUD 220 million strategic funding package with Franco-Nevada, consisting of both royalty and equity components. He described Franco-Nevada as one of the world’s leading royalty companies and said Minerals 260 viewed the agreement as a “win-win” with compelling metrics for both sides.
According to McFadyen, Franco-Nevada’s rationale includes increased exposure to what he characterized as a leading Australian gold project, with operations expected in under three years, as well as exposure to upside if the project outperforms and to Minerals 260’s exploration program.
For Minerals 260, McFadyen said the deal provides non-dilutive funding that improves the development schedule versus a scenario without the capital. He added that the market response supported the decision and argued the agreement could influence how Australian mining projects consider royalties alongside equity as a funding mechanism.
McFadyen said the funding would allow the company to accelerate and de-risk the development schedule and materially expand drilling plans for the year from about 30,000 meters to around 100,000 meters. He also said the capital would support procurement of long-lead items, early site works, and construction of the first camp, giving the project a “long runway into the construction period.”
Bullabulling: location, land position, and resource growth
McFadyen emphasized Bullabulling’s location, describing it as about a 45-minute drive from Kalgoorlie along a federal highway and positioned to benefit from existing services in what he called Australia’s gold mining capital. He said the company acquired 130 square kilometers from Zijin last year as part of the Bullabulling acquisition and now controls just under 600 square kilometers in the area.
He cited a mineral resource estimate of 4.5 million ounces (Moz), including 3.0 Moz indicated and 1.5 Moz inferred, across a 9-kilometer strike length. He added that when including the Gibraltar deposit (not shown on the slide he referenced), the strike length extends to 14 kilometers. McFadyen also noted several project attributes he described as valuable, including a Native Title agreement and “simple metallurgy,” in addition to the project’s scale and commodity exposure.
McFadyen said the current resource is 2.2 Moz larger than when Minerals 260 acquired the project less than a year earlier, making it, in his words, “the largest project not owned by a producer.” He said the company completed a 110,000-meter drilling campaign last year, delivering results that “exceeded” expectations, and reported adding just under 2.2 Moz over roughly eight months of drilling at a discovery cost of AUD 15 per ounce. He said the upcoming program would build on that work, with continued potential to grow the resource along strike and down dip.
Development milestones and staffing outlook
McFadyen said the company expects to deliver several major project milestones within the next 12 months, including a pre-feasibility study (PFS), a definitive feasibility study (DFS), an updated mineral resource, and a maiden ore reserve. He said these steps would lead to the board’s final investment decision in early 2027.
In a question-and-answer session, McFadyen addressed staffing in what was described as a tight labor market in Western Australia. He said Bullabulling’s scale and longevity help attract talent and noted the company has hired former colleagues from OZ Minerals through its network. He also said the company is investigating power options and that solar and wind are “absolutely in the mix.”
McFadyen said GR Engineering has been appointed for the engineering portion of the PFS/DFS work, while other components are under assessment. Asked about the future financing mix, he said the Franco-Nevada investment “flips” the company’s initial plan and de-risks the funding pathway, adding that future funding could include additional equity and debt, though specifics are still being worked through.
McFadyen closed by saying Minerals 260 provides what he views as strong developer exposure to the Australian gold price through its 4.5 Moz resource and that the company has the team, investors, and capital to execute its plan toward operations.
About Minerals 260 (ASX:MI6)
Minerals 260 Limited engages in the exploration and evaluation of mineral resources in Australia. The company explores for gold, platinum, palladium, nickel, copper, lithium, and rare earths elements, as well as precious and battery-related metals. It holds 100% interest in the Aston Critical Minerals project covering 1,709 square kilometers located in the Gascoyne Province of Western Australia; the Moora Gold-Copper-Nickel-PGE project covering approximately 1,100 square kilometers located in south-west Western Australia; the Dingo Rocks project covering approximately 271 square kilometers located in SE Western Australia; and the Yalwest Project located in the north of Perth.
