$250m Raised for Bullabulling
Minerals 260 has raised $250 million through a two tranche placement to support the continued development of its Bullabulling Gold Project in Western Australia.
The ASX listed mining company will issue approximately 284.1 million new shares at $0.88 each. The price represents no discount to the company’s closing share price on 11 September and a 3.5% premium to its 10 day volume weighted average price of $0.85.
The capital raising comes as Minerals 260 prepares to progress Bullabulling towards development and construction, with the project targeting a final investment decision in the first quarter of 2027.
Funding Strengthens Development Plans
The new funding adds to an existing cash position of approximately $183 million, while Minerals 260 also has access to a further $170 million in royalty funding from Franco-Nevada.
Combined, these sources are expected to provide approximately $633 million for development activities at Bullabulling, which is located around 65km west of Kalgoorlie in Western Australia’s Eastern Goldfields region.
Managing Director Luke McFadyen said the capital raising significantly strengthens the company’s balance sheet and supports an accelerated development timeline for the project.
Minerals 260 expects the remaining funding required for Bullabulling’s estimated $855 million pre-production capital requirement to come through traditional project finance.
Project Finance Discussions Under Way
The company says it has already received multiple non-binding indicative term sheets for project finance facilities that exceed its current requirements.
Minerals 260 expects to complete project financing in time to align with its planned final investment decision in Q1 2027.
The placement itself has been divided into two tranches. The unconditional tranche will raise approximately $178.9 million through around 203.3 million shares, while the conditional tranche is expected to raise a further $71.1 million through approximately 80.8 million shares, subject to shareholder approval.
Settlement of the first tranche is expected on 22 September, with the new shares scheduled to begin trading on 23 September.
Preparing for Construction
The funds will support a range of activities as Bullabulling progresses towards construction.
Planned expenditure includes long lead items, early works, engineering design, water infrastructure and the development of the project owner’s team. Funding will also support further exploration and working capital requirements.
The company is also planning to offer eligible shareholders the opportunity to participate through a share purchase plan, targeting an additional $30 million at the same issue price. Directors have indicated their intention to participate.
A 6.2 Million Ounce Gold Resource
Bullabulling currently has a mineral resource estimate of 190 million tonnes at 1.00 grams per tonne of gold, representing 6.2 million ounces across five deposits on granted mining leases.
The resource includes 140 million tonnes of indicated resources at 0.98 grams per tonne of gold and 51 million tonnes of inferred resources at 1.00 grams per tonne.
The project is being developed as a potential open pit mining operation around 25km west of Coolgardie in Western Australia’s Eastern Goldfields.
Moving Towards a Final Investment Decision
With its latest capital raising, Minerals 260 is positioned to continue advancing Bullabulling through its development programme while working towards the next major stage of project financing.
The combination of new equity, existing cash, royalty funding and potential project finance is intended to support the company as it moves from development planning towards construction and, ultimately, production.
For Minerals 260, Bullabulling remains the company’s flagship development project and the central focus of its strategy to establish a new gold operation in Western Australia.
Source: Mining.com.au
Image source: Minerals 260