Minerals 260 Secures A$410 Million Financing Commitment to Advance Bullabulling Gold Mine Development

en.Wedoany.com Reported - On November 11, Australian mining company Minerals 260 announced that it has secured a A$410 million (approximately US$283 million) debt financing commitment from a syndicate comprising Australia and New Zealand Banking Group (ANZ), National Australia Bank (NAB), and Societe Generale to advance the development of the Bullabulling gold project in Western Australia. The financing consists of a A$335 million project financing facility and a A$75 million working capital facility. Combined with previously obtained royalty financing and equity financing, the company stated that the existing funding arrangements are sufficient to cover funding requirements through to first gold production.

The two loan facilities have different tenors. The A$335 million project financing facility has a 7-year term with amortization, with remaining principal repaid at maturity; the A$75 million working capital facility has a 4-year term. The interest rate is the Australian Bank Bill Swap Bid Rate (BBSY) plus less than 3 percentage points, and interest incurred during the construction period may be capitalized. The financing arrangements do not require the company to undertake mandatory hedging of gold prices, foreign exchange, or diesel prices.

This debt financing is part of the overall funding package for the Bullabulling gold mine. Previously, Minerals 260 obtained A$170 million in royalty financing from Canada's Franco-Nevada and raised A$250 million in equity through a two-tranche placement. The newly secured A$410 million debt financing commitment, combined with the aforementioned funding arrangements, provides the funding source for mine construction.

The Bullabulling gold mine is located near Kalgoorlie in Western Australia, approximately 65 kilometers from the town, and is wholly owned by Minerals 260. The project has a mineral resource of approximately 6.2 million ounces of gold, corresponding to approximately 190 million tonnes of ore at an average gold grade of approximately 1 g/t, including approximately 4.4 million ounces in the Indicated category and approximately 1.7 million ounces in the Inferred category. The project is planned as an open-pit operation, and the company is currently advancing the definitive feasibility study, mine infrastructure construction, and permitting work.

Project development preparations have involved a accommodation camp, water supply, and mine support facilities. The company previously commenced construction of a miners' accommodation camp, with plans to expand accommodation capacity to 600 people, and has installed 22 water bores in the project area. The definitive feasibility study is expected to be completed in the first quarter of 2027, and the company plans to make a final investment decision in the same period.

The financing is currently at the stage of credit commitment and finalization of agreement documentation, with financial close expected in the first quarter of 2027 and first loan drawdown expected by the end of 2027. Upon satisfaction of conditions including completion of the definitive feasibility study, further due diligence, and execution of formal financing documents, the relevant financiers will provide funding as agreed. The company plans to achieve first gold production in 2028.