Why Minerals 260 Sold Aston Lithium Project to Double Down on Bullabulling Gold

Strategic Divestment to Refocus on Gold

Minerals 260 Limited (ASX: MI6) has taken a decisive step to streamline its portfolio by entering into a binding agreement to sell its Aston Lithium-REE Project in Western Australia’s Gascoyne region to Delta Lithium Limited (ASX: DLI). The transaction, announced on 21 May 2025, involves a cash consideration of $450,000 plus a 1.5% net smelter royalty on lithium and associated rare earth elements extracted from the project’s tenements.

This move aligns with Minerals 260’s strategic pivot towards its flagship Bullabulling Gold Project, located near Coolgardie in the Eastern Goldfields. The Bullabulling project boasts a substantial JORC-compliant resource estimate of 2.3 million ounces of gold, positioning it as a significant asset for the company’s growth ambitions.

Details of the Transaction

The sale encompasses 100% of the Aston Project’s tenements, which sit adjacent to Delta Lithium’s Yinnetharra Lithium Project, potentially offering synergies for Delta’s exploration and development plans. Completion of the sale is contingent upon ministerial consent for the transfer of certain tenements or will automatically occur 30 days after the agreement’s execution.

Importantly, the 1.5% net smelter return royalty on lithium and associated minerals such as tantalum, caesium, beryllium, and rubidium ensures Minerals 260 retains a stake in any future upside from the Aston Project. This structure balances immediate cash proceeds with long-term exposure to the lithium market, which remains volatile but promising given global demand for battery metals.

Bullabulling: The New Focus

With the divestment of Aston, Minerals 260 can concentrate resources and capital on advancing Bullabulling. The project’s 60 million tonnes at 1.2 grams per tonne gold resource offers significant scale and exploration potential, with multiple targets identified for further drilling. The company’s vision is to develop an open-pit mining operation that could become a cornerstone asset in Western Australia’s prolific goldfields.

Given the current gold market dynamics and the project’s strategic location on granted mining leases, Minerals 260’s renewed focus could unlock substantial shareholder value. The company’s management has signaled ongoing exploration efforts to expand the resource base, which will be closely watched by investors.

Market and Regulatory Considerations

The timing of the Aston Project sale hinges on regulatory approvals, which introduces some uncertainty. However, the terms of the agreement are standard for transactions of this nature, and Minerals 260 is committed to maintaining the tenements in good standing until completion.

For Delta Lithium, acquiring Aston offers an opportunity to consolidate its lithium holdings in the Gascoyne region, potentially accelerating its development pipeline. The royalty arrangement also aligns interests between the two companies, providing Minerals 260 with a foothold in the lithium sector without direct operational involvement.