Minerals 260 (ASX:MI6) signed an additional AU$200 million funding package with Franco-Nevada and its wholly-owned unit, Franco-Nevada Australia, to support the development of the Bullabulling gold project in Western Australia, according to a Monday Australian bourse filing.
Minerals 260, through its wholly-owned unit, Bullabulling Operations, entered into a royalty deed with Franco-Nevada Australia. Franco-Nevada Australia will pay AU$170 million to increase its royalty by 1.45% over the project area, leading to an aggregate royalty of 3.9% across the royalty area.
Once cumulative gold production from the royalty area reaches six million ounces, the aggregate royalty payable to Franco Nevada Australia will shrink to 2.75% from 3.9%.
Franco-Nevada confirmed its intention to subscribe for AU$30 million in a future equity raising, bringing Franco-Nevada's total investment in Minerals 260 to AU$420 million.