Minerals 260 Re-Rates on a Franco-Nevada Royalty Deal at Bullabulling

Fund managers say the royalty financing and expanding drill results are unlocking value at one of WA's largest undeveloped gold projects

31 May 2026 · 3 min read

Owner of one of Western Australia's largest undeveloped gold deposits, Minerals 260 has drawn a wave of fund manager interest since mid-2025, capped by a landmark royalty financing deal with Franco-Nevada that managers say has meaningfully re-rated the stock.

A 4.5 million ounce project worth more than the market credits

Seneca Financial Solutions initiated its position in September 2025, and shares rallied 71 per cent as the market absorbed the relative value on offer at the Bullabulling Gold project, 25 kilometres southwest of Coolgardie. Seneca argued a company at this stage of development, with potential for around 150,000 ounces per annum of simple, low-risk gold production in the prevailing gold price environment, was worth more than $400 million.

A landmark royalty deal changes the funding picture

ALC Capital's February 2026 update marked the next leg higher: a landmark royalty funding deal with Franco-Nevada led to a significant re-rating of the stock, addressing what had been a key funding question for the 4.5 million ounce Bullabulling project. Seneca Financial Solutions put a number on the deal in May 2026, describing Franco-Nevada, a roughly A$62 billion market cap company, striking an A$220 million royalty agreement with Minerals 260, a transaction Seneca said signalled the level of appetite for these kinds of deals in premier mining jurisdictions.

Franco Nevada (NYSE: FNV) (A$62 billion market cap) struck a A$220 million royalty deal with gold developer Minerals 260 (ASX: MI6), signalling the appetite for these types of deals in premier mining jurisdictions.

— Seneca Financial Solutions, Article, May 2026

Drilling results keep expanding the resource story

Firetrail Investments' May 2026 update reported shares up 21 per cent that month on updated drill results that increased confidence in grade and mineralisation continuity, describing Bullabulling as emerging as one of the largest undeveloped gold projects in Australia. SG Hiscock & Company, visiting the site the same month, noted up to 10 drill rigs on site under experienced management, expressing confidence in both the short development timeline and further potential resource upgrades from ongoing extension drilling.

The broader macro backdrop has added a further tailwind. Fairview Equity Partners' portfolio manager Leo Barry linked Minerals 260's appeal to the risk of Australian stagflation in May 2026, arguing that negative real interest rates combined with central bank gold buying make for a strong environment for gold miners, with the stock's share price popping nearly 10 per cent that month on positive drilling results alone.