Franco-Nevada’s $220M Bet Why Bullabulling Just Became One of Australia’s Most Watched Gold Projects

Key Highlights:

• $220 million strategic funding package secured with Franco-Nevada
• $170 million royalty deal plus $50 million equity at 7 percent premium
• Largest ever Australian investment by Franco-Nevada
• Bullabulling hosts 4.5 million ounces of gold
• Funds to fast track PFS, drilling, village build and early works
  
   

In a market where junior miners often struggle to raise capital without heavy dilution, Minerals 260 (ASX: MI6) has done something rare. It has secured a $220 million strategic funding package from Franco-Nevada, the world’s leading gold royalty company.

The announcement, released to the ASX on 23 February 2026, details a transformational agreement to accelerate development of the 4.5 million ounce Bullabulling Gold Project in Western Australia.

But the real story is not just the money. It is who is writing the cheque.

The World’s Gold Standard

Franco-Nevada is widely regarded as the benchmark in global royalty investing. It is debt free, diversified and listed in both Toronto and New York under the symbol FNV  . Its business model is simple but powerful. It provides upfront capital to miners in exchange for a percentage of future gold revenue, without taking on operating risk.

On Monday, Franco-Nevada agreed to provide $170 million in royalty funding and invest a further $50 million in equity at 45 cents per share, a 7 percent premium to Minerals 260’s last close  . That equity investment will leave Franco-Nevada holding 4.9 percent of the company.

For a junior developer, raising funds at a premium is unusual. In a period where many small caps are issuing discounted shares to stay afloat, this deal signals strong institutional confidence.

Minerals 260 Managing Director Luke McFadyen described the agreement as a major milestone.

“This is a fantastic outcome for Minerals 260 and our shareholders. Securing a $220 million funding package with the world’s leading gold royalty company at this early 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,” Mr McFadyen said.

He added that Franco-Nevada’s extensive due diligence across resource, metallurgy, hydrology and permitting “validates Bullabulling as one of the leading gold projects in Australia.” 

The Asset Behind the Endorsement

Bullabulling is not a small discovery. According to the project overview on page 7 of the release, it hosts a JORC 2012 Mineral Resource Estimate of 130 million tonnes at 1.0 grams per tonne gold for 4.5 million ounces. Located 25 kilometres south west of Coolgardie in Western Australia’s Eastern Goldfields, it sits in one of the world’s most established gold belts.

For context, many juniors celebrate reaching one million ounces. Bullabulling is already more than four times that size.

Franco-Nevada President and CEO Paul Brink said the company was impressed by the scale and progress.

“Bullabulling is a large and growing orebody 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,” Mr Brink said.

He added, “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.” 

What the $220 Million Unlocks

The funding arrives ahead of the Pre Feasibility Study, scheduled for release in July 2026 alongside a maiden Ore Reserve  . Instead of waiting for studies to finish before seeking capital, Minerals 260 can now accelerate development.

Planned activities include construction of a 400 room accommodation village, procurement of long lead items, early site works and expansion of drilling programs  . A 30,000 metre drilling campaign is already underway and will now be expanded, with results feeding into an updated resource estimate in mid 2026.

Metallurgical test work has achieved gold extraction rates above 95 percent in laboratory tests, according to page 5 of the release, supporting confidence in processing performance.

The royalty structure itself is also telling. Franco-Nevada will receive an initial 2.45 percent royalty over most of the project area, with stepped down rates once cumulative production reaches 4 million ounces  . That aligns incentives for long term production rather than short term gain.

Minerals 260 Ltd (ASX: MI6) share price movement (23 Feb 2026)

• Price as of ~2:34pm AEDT: $0.518
• Change on the day: +23.21%
• Volume: 24,919,978 shares traded
• 52-week range: $0.100 – $0.560
• 1-year return: +298.08%
• Market cap: ~$1.07B
  
   

Source: MarketIndex 

These figures show a strong positive market reaction, with MI6 shares jumping more than 23% intraday as the market priced in the impact of the $220 million endorsement from Franco-Nevada.  

A Broader Gold Backdrop

The timing is significant. Gold prices have surged to record levels in 2026 amid geopolitical tensions and inflation concerns. Historically, such cycles have rewarded companies with large, undeveloped resources in stable jurisdictions.

With this deal, Franco-Nevada has effectively placed a quality stamp on Bullabulling. In a sector where credibility is hard won, a $220 million endorsement from the world’s largest royalty player may carry more weight than any drill result.

For Minerals 260, the path from developer to producer has just become shorter and far better funded.