Bellavista Resources has successfully raised A$35 million through a two-tranche placement to fund its strategic acquisition and exploration plans in Canada and Australia.
- A$35 million placement upsized from A$25 million due to strong institutional demand
- Acquisition of up to 80% interest in Pickle Crow Gold Project in Ontario, Canada
- Tranche 1 (~A$19 million) settled; Tranche 2 (~A$16 million) pending shareholder approval
- Funds allocated to exploration at Pickle Crow, Sioux Lookout, and Brumby projects
- Post-placement cash balance expected around A$32 million
Bellavista’s Capital Raise Exceeds Expectations
Bellavista Resources Ltd (ASX, BVR) has successfully completed a two-tranche placement raising A$35 million, significantly above its initial target of A$25 million. The strong demand from institutional and sophisticated investors, including existing shareholders, reflects confidence in Bellavista’s strategic direction and growth prospects.
The placement price was set at A$0.75 per share, representing a modest discount to recent trading prices, a common practice to incentivise participation in capital raises. Tranche 1, raising approximately A$19 million, has already settled, while Tranche 2, expected to raise around A$16 million, awaits shareholder approval at an extraordinary general meeting scheduled for late March 2026.
Strategic Acquisition of Pickle Crow Gold Project
Concurrent with the placement announcement, Bellavista revealed its agreement to acquire up to an 80% interest in the Pickle Crow Gold Project and associated exploration assets in Ontario, Canada, from FireFly Metals Ltd (ASX, FFM). This acquisition, subject to shareholder and regulatory approvals, positions Bellavista to expand its footprint in a prolific gold region with significant exploration upside.
Managing Director Glenn Jardine emphasised the project’s potential, noting that exploration has been limited since 2023 and that the gold resource remains open along strike and at depth. The acquisition aligns with Bellavista’s ambition to grow its resource base and deliver value to shareholders.
Focused Use of Funds to Drive Exploration and Growth
Proceeds from the placement will primarily fund the exercise of the PC Gold Earn-In and an aggressive exploration program at the Pickle Crow and Sioux Lookout projects. This includes resource and regional drilling, geophysical and geochemical surveys, engineering studies, and environmental and community engagement activities, with an allocation of approximately A$23 million.
Additionally, around A$4 million is earmarked for advancing exploration at Bellavista’s Brumby project in Western Australia, including heritage surveys and bio-leaching studies. The remaining funds will cover acquisition and placement costs, corporate expenses, and general working capital.
Looking Ahead, Capitalised and Ready for Growth
Upon completion of the placement and acquisition, Bellavista expects to hold a cash balance of roughly A$32 million, providing a solid financial foundation to pursue its exploration and development objectives. The company’s leadership expresses optimism about unlocking the value of its expanded asset base and welcomes new shareholders from FireFly Metals.
While the placement is not conditional on the acquisition, the latter’s completion will be a critical milestone. Shareholder approval for Tranche 2 and the acquisition will be pivotal in determining the company’s next steps and capital deployment strategy.
Bottom Line?
Bellavista’s successful capital raise and strategic acquisition set the stage for a pivotal year in gold exploration, but shareholder approvals and exploration outcomes remain key to watch.
Questions in the middle?
- Will shareholders approve the Tranche 2 placement and acquisition at the upcoming EGM?
- How will Bellavista’s exploration results at Pickle Crow influence its valuation and development plans?
- What impact will the dilution from the placement have on existing shareholders’ stakes?