TSX- and NYSE-listed gold streaming company Franco-Nevada Corporation has entered into an agreement to acquire a A$170-million, or $122-million, gross royalty from Minerals 260, which will further support development of the Bullabulling gold project, in Western Australia.

Franco-Nevada also agreed to subscribe for A$30-million, or $22-million, of Minerals 260's ordinary shares as a lead order in a future equity raise.

Franco-Nevada's Australian subsidiary had an existing 2.45% gross royalty interest over the project, which now totals a 3.90% royalty on an expanded royalty land tenure.

Overall, Franco-Nevada has provided Minerals 260 with an aggregate A$420-million, or $300-million, of support.

Franco-Nevada CEO and president Paul Brink says the Minerals 260 team and the Bullabulling orebody both continue to surpass expectations. "Minerals 260 is ahead of schedule on project development and financing and has rapidly grown its resource endowment.

"We are delighted to take this next step in building our partnership with the company and firmly believe that our financial backing can play a lynchpin role in generating value for Minerals 260 shareholders."

Minerals 260 MD Luke McFadyen says Franco-Nevada's decision to invest another A$200-million in the company supports what both parties believe Bullabulling will become  - a near-term, large-scale, long-life and expandable gold asset in one of the world's best mining jurisdictions.

"This is a partnership built on focus and determination to bring Bullabulling into production and supports mutually beneficial outcomes for each company. This additional funding materially strengthens our balance sheet and our path to final investment decision in early 2027," he states.

If all goes well, Bullabulling will enter production as soon as the second half of 2028, with planned yearly average gold production of 150 000 oz over the first ten years before a Stage 2 expansion to 200 000 oz/y.

The new royalty financing proceeds, together with proceeds from a future equity raise, will fully fund the equity component for bringing Bullabulling into production.