Minerals 260 Limited (ASX: MI6) Announces Major Acquisition
Major Acquisition
Minerals 260 Limited (ASX: MI6) has executed binding agreements to acquire 100% of the Bullabulling Gold Project from Norton Gold Fields Pty Ltd, a subsidiary of Zijin Mining Group Co., Ltd. The acquisition is valued at A$156.5 million in cash plus A$10 million in shares. This equates to an acquisition cost of A$74 per ounce for a JORC 2012 RPEEE Mineral Resource Estimate (MRE) of 60 million tonnes at 1.2g/t Au, amounting to 2.3 million ounces of gold. The Bullabulling project is among Australia’s largest open-pittable gold resources and is conveniently located in the Eastern Goldfields region of Western Australia.
Operational Changes and Leadership Appointments
Following the acquisition, Minerals 260 has appointed Tim Goyder as Chairman, with Stacey Apostolou joining as a Non-Executive Director and Jamie Armes appointed Chief Financial Officer and Company Secretary effective January 1, 2025. The company ended the quarter with a cash balance of A$9.2 million, with plans of commencing a drilling campaign targeting high-potential areas within the Bullabulling project post-transaction.
Future Outlook
Minerals 260 plans to conduct extensive drilling following the completion of the acquisition, which is contingent upon receiving necessary approvals, including shareholder consent. The proposed drilling program will involve 80,000 metres across Resource Extension and Reverse Circulation drilling to explore depth and strike targets.
Strategic Focus
As part of a strategic review, the company will focus primarily on the Bullabulling Gold Project and has suspended fieldwork at its Aston and Dingo Rocks Projects. Additionally, a conditional admission letter from ASX is anticipated as part of the acquisition process. Further details regarding a planned equity raise are expected in the coming weeks, with Bell Potter Securities Limited and Argonaut Securities Pty Limited acting as Joint Lead Managers.
Motley Fool contributor Abbie Stokes 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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