Allens has advised Minerals 260 on a $220 million strategic funding package with Franco-Nevada Corporation to support development of the 4.5Moz Bullabulling Gold Project in Western Australia.
The funding package comprises a $170 million royalty financing, structured through a royalty deed granting Franco-Nevada an increased gross royalty over the project, and a $50 million equity subscription for a strategic minority stake in Minerals 260.
Allens advised on all aspects of the transaction, including the royalty deed, equity subscription, mining mortgages and certain tax considerations.
‘This funding package is a transformational milestone for Minerals 260 and one of the largest royalty financings ever completed for an Australian gold development,’ said lead partner Ben Farnsworth.
‘Secured ahead of the project’s pre-feasibility study, it provides a largely non-dilutive and strategically aligned capital solution that will advance a major Australian gold asset while materially de-risking Bullabulling’s development and financing pathway.’
Mining partner, Richard Malcolmson, said: ‘This transaction highlights Australia’s continued appeal to global royalty and streaming investors and reinforces royalty financing as a mainstream option for large-scale mining developments. We’re seeing growing demand from developers for alternative financing structures.’
A cross-practice team – drawing on expertise from Allens’ corporate, resources, finance and tax teams – advised through the complexity of combining royalty financing, equity investment and mining-specific security arrangements within a tight transaction timetable.
The global nature of the deal, which sees a global royalty company invest in an ASX-listed miner, demonstrates the firm’s market-leading expertise in sophisticated mining finance structures at the intersection of M&A, project development and alternative capital.
