Mining entrepreneur negotiates to take control of one of Australia’s largest undeveloped gold projects

Minerals 260 has sealed a deal to buy a gold project in Western Australia from Norton Gold Fields, a wholly owned subsidiary of China’s Zijin Mining.

Mining at the Bullabulling gold fields in Western Australia.

The Tim Goyder-chaired Minerals 260 has snuck under the guard of bigger rivals to land an audacious deal in which it will buy a gold project in Western Australia from one of China’s global mining ­giants.

Minerals 260 has agreed to pay Norton Gold Fields, a wholly owned subsidiary of China’s Zijin Mining, $156.5m in cash plus $10m of script for the Bullabulling project near Kalgoorlie.

The sale price for what is touted as one of Australia’s largest undeveloped gold projects is almost six times the market capitalisation of Minerals 260, which was created via the spin-off of ­Liontown Resources’ non-lithium exploration assets and listed on the ASX in 2021.

Mr Goyder remains chairman and a big shareholder in Liontown, which attracted a spurned $US6.6bn takeover bid from New York-listed Albemarle at the height of the WA lithium bubble in 2023.

Minerals 260 is led by former OZ Minerals portfolio strategy boss Luke McFadyen and has been on the hunt for big acquisitions despite its small size and a big fall in its stock since listing.

Tim Goyder

Bullabulling operated as a gold mine in the 1990s and some infrastructure is in place, with Minerals 260 keen to get it back into production with the gold price on a high.

Zijin, China’s biggest non-coal miner and valued at about $90bn, considered Bullabulling a non-core asset and ran a competitive sale process. Zijin will retain its Paddington and Binduli gold mines, operated by Norton, in the Goldfields.

Mr Goyder said the purchase price of $166.5m represented an acquisition cost of $74 an ounce for 2.3 million ounces at Bullabulling and was great value.

Minerals 260 will need a capital raising of about $200m to pay for Bullabulling and work at the site, with Bell Potter and Argonaut on the job for what is effectively a relaunch of the company via the first big deal in the Australian gold sector in 2025.

Mr Goyder said he had ambitions to turn Minerals 260 into a billion-dollar company in what would mirror some of his previous success with battery minerals-focused exploration plays Liontown and Chalice Mining.

“It’s about making money for shareholders. I love exploration, but it’s not easy,” he said.

“The reason we acquired this asset is that No.1 it is a great asset. No.2 it’ll give shareholders the ability to hopefully make five or 10 times their money.”

Mr Goyder owns about 13 per cent of Minerals 260 and became chairman last month, while Mr McFadyen came on board in 2023, soon after BHP completed the takeover of OZ Minerals.

Mr McFadyen said the Bullabulling deal would not have been possible without Mr Goyder on board.

“I challenge you to find another $30m company that could buy a $166.5m gold mine in a gold bull market,” he said. “You need someone like Tim at the top to really show leadership to do that.”