Minerals 260 A$410M Bullabulling finance: project economics for mine planners
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Minerals 260 has secured A$410 million in bank debt from ANZ, National Australia Bank and Société Générale for the Bullabulling gold project in Western Australia, with no hedging requirement and interest set at under 3% above the bank bill swap bid rate. Combined with Franco-Nevada’s US$170 million royalty funding and US$30 million equity, the package is intended to fund a 5 Mtpa plant and development to first production, targeting about 150,000 oz gold per year from 2028. July’s resource stands at 140 Mt indicated at 0.98 g/t and 51 Mt inferred at 1.0 g/t, supporting a 19-year mine life and long-term pit and tailings planning near Kalgoorlie.
Technical Brief
- ANZ, NAB and Société Générale split A$335M project finance plus A$75M working capital facilities.
- Project loan tenor is seven years, with a separate four‑year working capital facility.
- Interest during construction is capitalised, increasing debt at commissioning but easing early cashflow pressure.
- Franco-Nevada’s gross royalty on Bullabulling rises to 3.9%, up from 2.45%, under the September deal.
- July resource: 140 Mt indicated at 0.98 g/t Au (4.4 Moz) plus 51 Mt inferred at 1.0 g/t (1.7 Moz).
- Prefeasibility envisages a 19‑year operating life, with plant layout allowing future throughput expansion beyond 5 Mtpa.
Our Take
Bullabulling’s low head grade (about 1g/t) combined with a 5Mtpa plant and 19‑year life puts Minerals 260 into the same long‑life, bulk‑tonnage camp as several other Western Australian gold plays in our database, where cost control and strip ratio management tend to be more decisive than incremental grade gains.
The step‑change in Franco‑Nevada’s gross royalty to 3.9% on Bullabulling, alongside its aggregate $420 million backing, signals that royalty capital is increasingly competitive with bank debt for large Australian gold builds, something only a handful of gold‑price pieces in our coverage have highlighted explicitly.
Earlier related drilling reports from 2025–2026 on Bullabulling show progressively higher‑grade intercepts, suggesting upside to the current 6.1–6.2Moz resource base that could improve project economics over the seven‑year loan term if those zones can be converted into reserves and brought into early mine schedules.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
Related Articles
Related Industries & Products
Mining
Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.
Construction
Quality control software for construction companies with material testing, batch tracking, and compliance management.
CMRR-io
Streamline coal mine roof stability assessments with our cloud-based CMRR software featuring automated calculations, multi-scenario analysis, and collaborative workflows.
HYDROGEO-io
Comprehensive hydrogeological testing platform for managing, analysing, and reporting on packer tests, lugeon values, and hydraulic conductivity assessments.
GEODB-io
Centralised geotechnical data management solution for storing, accessing, and analysing all your site investigation and material testing data.


