Minerals 260 has completed the funding package for Bullabulling, its gold project about 65 kilometres from Kalgoorlie in Western Australia. The company secured $410 million in credit-approved debt commitments comprising a $335 million project finance facility and a $75 million working capital facility from ANZ, NAB and Societe Generale. The project facility runs seven years and the working capital facility four years, priced at less than three percent above the Australian Bank Bill Swap Bid Rate, and the company said the agreement requires no mandatory gold price, foreign exchange or diesel price hedging.
Combined with a $170 million royalty agreement with Franco-Nevada secured in the September quarter and a $250 million equity placement, the commitments are expected to fully fund Bullabulling through to first gold production. Managing director Luke McFadyen said obtaining credit-approved terms before completion of the definitive feasibility study reflected the project’s quality, margin and long life. Financial close is expected in the first quarter of 2027 and the first debt drawdown towards the end of 2027, subject to completing the study, final documentation and further due diligence.
Bullabulling hosts a mineral resource of 190 million tonnes grading 1.0 gram per tonne gold for 6.2 million ounces and is being advanced as a large-scale open pit. Recent drilling returned 1.1 metres at 290 grams per tonne gold at Bacchus and 7 metres at 10.9 grams per tonne at Phoenix. The definitive feasibility study and the final investment decision are both targeted for the first quarter of 2027.