Minerals 260 Limited (ASX:MI6) Announces Acquisition of Bullabulling Gold Project
Acquisition Details
Minerals 260 Limited (ASX:MI6) has executed binding documentation to acquire 100% of the Bullabulling Gold Project from Norton Gold Fields Pty Ltd. The project features a JORC 2012 reportable Mineral Resource estimate of 60Mt at 1.2g/t Au, equating to 2.3 million ounces of gold. The acquisition cost totals A$166.5 million, consisting of A$156.5 million cash and A$10 million in Minerals 260 shares, representing A$74 per ounce for this high-quality asset.
Project Highlights
The Bullabulling project is positioned within a highly productive gold region in Western Australia, on granted mining leases that have a Native Title Land Use Agreement in place. Previous studies indicate the ore is amenable to conventional Carbon-In-Leach processing with an average gold recovery rate of 87%. The assets comprise extensive historical drilling data with approximately 12,000 drill holes and over 530,000 metres drilled, presenting significant potential for resource expansion.
Future Development Plans
Following the completion of the acquisition, Minerals 260 plans to initiate an 80,000 metre Reverse Circulation (RC) and Diamond Core drilling campaign to extend and improve the mineral resource. The project also boasts existing infrastructure, including an exploration camp and facilities, which supports its near-term production goals.
Executive Remarks
Luke McFadyen, Managing Director of Minerals 260, stated, “This is an outstanding and transformational acquisition for Minerals 260 and our shareholders. The opportunity for us now is to develop a large-scale open pit gold mine located in the heart of Western Australia’s Eastern Goldfields, putting us on a clear trajectory to becoming a leading mid-tier ASX gold producer.”
Regulatory Compliance and Next Steps
The acquisition’s finalisation is contingent on shareholder approval and compliance with ASX Listing rules, including a planned public equity raise targeting existing shareholders in Australia and New Zealand. Further details on these processes and a forthcoming extraordinary general meeting will be announced soon.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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