Minerals 260 (ASX:MI6) secured commitments to raise AU$250 million through a dual-tranche placement of about 284.1 million new shares to institutional and sophisticated investors at AU$0.88 per share, according to a Wednesday filing with the Australian bourse.

The placement, which includes a cornerstone commitment of AU$30 million from Franco-Nevada Corp., introduces multiple new domestic and international institutional investors to the company's register.

It includes an unconditional tranche to raise AU$178.9 million through the issue of about 203.3 million shares, and a conditional tranche to raise AU$71.1 million via the issue of 80.8 million shares, subject to shareholder approval.

Additionally, Minerals 260 will also offer eligible shareholders the opportunity to participate in a share purchase plan to raise up to AU$30 million at the same price.

The company said proceeds from the placement will support the development of its Bullabulling gold project in Western Australia.

Minerals 260 shares fell 3% in recent Wednesday trade.