Minerals 260 Ltd. has taken a massive step towards gold production in Western Australia after securing AU$410 million in credit-approved debt commitments for its Bullabulling gold project.
The company executed a binding term sheet and commitment letter with a syndicate of tier-one banks comprising ANZ, NAB and Societe Generale. The financing package consists of a AU$335 million Project Finance Facility with a seven-year loan term and a AU$75 million Working Capital Facility running for four years.
Combined with royalty funding from Franco-Nevada and capital from a recent equity raising, the debt package ensures the 6.2-million-ounce project, situated 65 kilometres west of Kalgoorlie, is now fully funded through to first gold production.
Under the terms agreed following extensive due diligence and an independent technical assessment, the facilities feature attractive commercial rates set at less than 3 per cent above the Bank Bill Swap Reference Rate (BBSY).
Notably, the deal imposes no mandatory hedging requirements on gold prices, foreign exchange or diesel, giving the company full exposure to spot gold prices.
Minerals 260 Managing Director Luke McFadyen said securing credit approval prior to completing the project’s definitive feasibility study (DFS) showcased the quality and long-life profile of the Bullabulling asset.
“Obtaining credit approved terms before the completion of the DFS and the highly competitive debt funding process reflects the high quality, high margin and long-life aspects of Bullabulling,” McFadyen said.
“With Bullabulling now fully funded through to first production, we look forward to completing the DFS and we are on track to make a final investment decision during the first quarter of 2027.”
Financial close and execution of formal documentation are expected in the first quarter of 2027, with the initial debt drawdown scheduled for the end of 2027.
