FireFly Metals has agreed to sell its Ontario gold assets to Bellavista Resources for up to A$86.1 million in shares and performance rights, unlocking value for shareholders while focusing on its copper-gold growth strategy.
- Sale of 70% Pickle Crow and 100% Sioux Lookout projects to Bellavista
- Upfront consideration of 60 million Bellavista shares valued at A$47.4 million
- Contingent performance rights worth up to A$38.7 million tied to exploration milestones
- FireFly shareholders to receive Bellavista shares via in-specie distribution
- Transaction completion expected early April 2026, subject to approvals
Strategic Divestment Unlocks Value
FireFly Metals Ltd (ASX, FFM) has announced a significant strategic move, agreeing to sell its Ontario gold assets, including a 70% stake 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, is structured predominantly in scrip, with FireFly receiving 60 million Bellavista shares upfront and up to 50 million contingent performance rights linked to exploration and production milestones.
This transaction marks a pivotal moment for FireFly, allowing the company to crystallise value from its gold assets while maintaining exposure to their future upside through the performance rights. At the same time, FireFly can sharpen its focus on advancing its flagship Green Bay Copper-Gold Project in Newfoundland, a world-class asset with substantial growth potential.
Shareholder Benefits and Exposure
FireFly shareholders stand to benefit directly from the deal through an in-specie distribution of the upfront Bellavista shares, expected to represent approximately 31% of Bellavista’s shares post-transaction and capital raising. Shareholders will receive roughly one Bellavista share for every 12.8 FireFly shares held, potentially resulting in FireFly and its shareholders owning up to 40% of Bellavista.
The contingent consideration performance rights provide FireFly with ongoing upside exposure, vesting upon Bellavista achieving key milestones such as completing 10,000 metres of drilling, announcing a minimum 5 million ounce gold resource, and producing at least 200,000 ounces of gold from the Ontario assets within five years. These milestones align incentives and reflect Bellavista’s commitment to unlocking the full potential of the Pickle Crow and Sioux Lookout projects.
Bellavista’s Growth Ambitions and Leadership
Bellavista Resources, led by mining veterans Glenn Jardine and Peter Canterbury, who previously steered De Grey Mining through the discovery and development of the Hemi Gold deposit, plans to raise approximately A$25 million to fund an aggressive exploration program. This capital injection aims to expand the resource base and accelerate development, leveraging Bellavista’s focused management team and access to institutional investors.
Early-stage exploration results at Pickle Crow have already demonstrated significant potential, complementing the existing high-grade inferred resource of 2.8 million ounces of gold at 7.2 grams per tonne. Bellavista’s dedicated approach could unlock substantial value that was previously constrained under FireFly’s broader portfolio.
Transaction Conditions and Timeline
The deal is subject to customary conditions including shareholder approvals from both FireFly and Bellavista, regulatory clearances, and a favourable Australian Taxation Office ruling on the tax treatment of the in-specie distribution. Completion is anticipated in early April 2026, with shareholder meetings scheduled for late March.
FireFly’s management emphasises the low execution risk and strategic rationale behind the transaction, highlighting the benefits of portfolio simplification and capital efficiency. The company’s directors have expressed support, with key insiders intending to vote in favour of the deal.
Looking Ahead
As FireFly pivots towards its copper-gold ambitions at Green Bay, the transaction offers shareholders a balanced mix of immediate value and future growth potential through Bellavista’s exploration upside. The market will be watching closely to see how Bellavista executes its capital raising and exploration plans, and how FireFly leverages its streamlined focus to drive shareholder returns.
Bottom Line?
FireFly’s divestment of Pickle Crow crystallises value while keeping shareholders invested in future gold upside through Bellavista.
Questions in the middle?
- Will Bellavista meet the ambitious exploration and production milestones to unlock full contingent consideration?
- How will FireFly’s renewed focus on Green Bay impact its growth trajectory and capital needs?
- What level of shareholder support will the transaction and in-specie distribution receive at upcoming meetings?