Franco-Nevada Corporation (TSX: FNV) (NYSE: FNV) is writing another cheque to Minerals 260 Limited, committing A$200 million to the Bullabulling gold project seven months after its first investment in the developer.
The bulk of it, at A$170 million, buys an additional 1.45% gross royalty through a wholly-owned Australian subsidiary. That lifts Franco-Nevada’s total royalty on the project to 3.90%, up from the 2.45% it secured in February. The remaining A$30 million, is a cornerstone commitment to a future Minerals 260 equity raise.
The royalty steps down to 2.75% once 6 Moz of gold has been produced from royalty lands. Franco-Nevada also widened its area of interest to 10 km from the boundary of the historical royalty tenure, covering roughly 650 km², and retains a right of first refusal on future streams and royalties tied to those properties.
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Bullabulling, in Western Australia’s Eastern Goldfields, hosts 4.4 Moz of indicated resources grading 0.98 g/t and 1.7 Moz inferred at 1.0 g/t as of July 2026. A prefeasibility study completed the same month contemplates a staged build — roughly 150,000 oz annually from a 5 Mtpa first stage, expanding toward 200,000 oz — over a 19-year mine life.
“Both the team at Minerals 260 and the Bullabulling orebody continue to surpass our expectations,” said Paul Brink, Franco-Nevada’s president and chief executive. “Minerals 260 is ahead of schedule on project development and financing and has rapidly grown its resource endowment.”
Minerals 260’s managing director Luke McFadyen called the project “a near-term, large scale, long-life, expandable gold asset in one of the world’s best mining jurisdictions.”
The two packages now total A$420 million. Franco-Nevada is paying from cash on hand, having reported US$1.0 billion in cash and US$4.3 billion in available capital at June 30.
A definitive feasibility study and final investment decision are expected in early 2027 for the Bullabulling project, with first production possible in the second half of 2028.
Franco-Nevada last traded at $369.01 on the TSX.
