FireFly Metals has agreed to sell its Ontario gold assets, including a 70% stake in the Pickle Crow Project, to Bellavista Resources for up to A$86.1 million in scrip. FireFly shareholders will receive Bellavista shares, maintaining exposure to the assets while FireFly focuses on its copper-gold ambitions.
- Sale of Pickle Crow and Sioux Lookout gold projects to Bellavista for up to A$86.1 million
- FireFly shareholders to receive Bellavista shares via an in-specie distribution
- Contingent performance rights offer FireFly upside linked to exploration milestones
- Transaction allows FireFly to concentrate on Green Bay Copper-Gold Project
- Completion expected by early April 2026, pending shareholder and regulatory approvals
Strategic Asset Sale Unlocks Value
FireFly Metals Ltd (ASX, FFM, TSX, FFM) has announced a significant strategic move, agreeing to sell its Ontario gold assets, including a 70% interest in the Pickle Crow Gold Project and full ownership of the Sioux Lookout Project, to Bellavista Resources Ltd (ASX, BVR). The deal, valued at up to A$86.1 million in scrip consideration, marks a pivotal shift for FireFly as it seeks to streamline its portfolio and sharpen its focus on its flagship Green Bay Copper-Gold Project in Newfoundland.
The transaction involves FireFly receiving 60 million Bellavista shares upfront, valued at approximately A$47.4 million, alongside 50 million contingent performance rights worth around A$38.7 million. These performance rights are tied to exploration and production milestones, providing FireFly with ongoing upside exposure to the Ontario gold assets despite divesting direct ownership.
Shareholder Benefits and Exposure
FireFly plans to distribute the upfront Bellavista shares to its shareholders via an in-specie distribution, subject to shareholder approval. This means FireFly shareholders will gain direct exposure to Bellavista’s growth prospects, receiving roughly one Bellavista share for every 12.8 FireFly shares held. Post-transaction, FireFly and its shareholders could collectively own up to 40% of Bellavista, maintaining a significant stake in the future of the Pickle Crow and Sioux Lookout projects.
Bellavista, led by mining veterans Glenn Jardine and Peter Canterbury, who notably steered De Grey Mining through its discovery and eventual A$6 billion takeover, plans to raise approximately A$25 million to fund an aggressive exploration program. Early-stage regional exploration at Pickle Crow has already demonstrated promising potential to expand its current high-grade inferred resource of 2.8 million ounces of gold at 7.2 grams per tonne.
Transaction Rationale and Future Focus
FireFly’s CEO Darren Cooke described the deal as a "win-win," unlocking value that was unlikely to be realised under FireFly’s direct ownership. The sale allows FireFly to reduce capital requirements and management distractions, while retaining upside through milestone-linked performance rights. This strategic pivot enables FireFly to concentrate resources on advancing the Green Bay Copper-Gold Project, which boasts a substantial resource base and growth potential.
The transaction is subject to customary conditions, including approvals from both FireFly and Bellavista shareholders, regulatory clearances, and a successful Bellavista capital raising. Completion is anticipated by early April 2026, with shareholder meetings scheduled for late March.
Market Implications and Outlook
Bellavista’s acquisition positions it as a focused gold explorer with a high-quality asset portfolio and an experienced management team. For FireFly shareholders, the deal offers a blend of immediate value realisation and continued exposure to the Ontario gold assets’ upside potential. Investors will be watching closely as Bellavista embarks on its exploration campaign, which could significantly enhance the value of the Pickle Crow Project and justify the contingent consideration payments.
Bottom Line?
FireFly’s divestment of its Ontario gold assets marks a strategic refocus on copper-gold growth, while Bellavista takes the helm to unlock Pickle Crow’s full potential.
Questions in the middle?
- Will Bellavista’s exploration efforts at Pickle Crow meet the milestones to trigger performance rights vesting?
- How will FireFly’s shareholders respond to the in-specie distribution and ongoing exposure to Bellavista?
- What impact will this transaction have on FireFly’s financial flexibility and development timeline for Green Bay?