Franco-Nevada (FNV) said Sunday it agreed to acquire a 170 million-Australian-dollar ($120.4 million) gross royalty from Minerals 260 to support its development of the Bullabulling gold project in Western Australia.

The purchase will be in addition to Franco-Nevada's historical 1% gross royalty over certain project tenements, effectively raising it to a 2.45% gross royalty over a Bullabulling land package, covering all mineral resources, plus an area of interest, the company said.

An initial A$75 million royalty funding is expected to occur by Thursday, while the second A$95 million funding is likely upon obtaining approval from Australia's Foreign Investment Review Board.

Franco-Nevada also said it agreed to subscribe for A$50 million of Minerals 260's shares. Upon that deal's closing, the company will own about 4.9% of Minerals 260's issued and outstanding shares.