FireFly to unlock value from Pickle Crow Gold Project by sale for up to A$86.1M

Core Viewpoint - FireFly Metals Ltd has entered into a binding share sale and purchase agreement with Bellavista Resources Ltd to sell its Ontario Gold Assets, which include a 70% interest in the Pickle Crow Project and 100% of the Sioux Lookout Project, for a total consideration valued at up to A$86.1 million, providing ongoing exposure to the assets for FireFly shareholders while allowing FireFly to focus on its Green Bay Copper-Gold Project [6][9]. Transaction Details - The total consideration includes upfront payment of 60 million Bellavista shares valued at A$47.4 million and contingent consideration of 50 million performance rights valued at A$38.7 million, based on Bellavista's closing share price of A$0.79 on January 30, 2026 [1][2][6]. - FireFly shareholders are expected to receive approximately 1 Bellavista share for every 12.8 FireFly shares held, subject to shareholder approval [6][20]. Strategic Rationale - The transaction is seen as a strategic move that allows FireFly shareholders to retain exposure to the Ontario Gold Assets through their shareholding in Bellavista while enabling FireFly to concentrate on the development of the Green Bay Copper-Gold Project [9][10]. - Bellavista is expected to leverage its dedicated exploration focus to create significant value from the acquired assets, which could lead to substantial growth for its shareholders, many of whom are also FireFly shareholders [5][10]. Management and Leadership - Bellavista is led by experienced executives Glenn Jardine and Peter Canterbury, who previously led De Grey Mining Ltd, indicating a strong management team capable of optimizing the value of the Ontario Gold Assets [10][33]. Milestones and Performance Rights - The contingent performance rights are structured in three tranches, with the first milestone expected to vest within 12 months of completion, potentially increasing FireFly's interest in Bellavista to no less than 9.9% [12][20]. - The milestones include drilling activities and resource estimates that, if achieved, will further enhance the value of the transaction for FireFly shareholders [12][13]. Financial Implications - The transaction is expected to provide FireFly with a simplified portfolio, reduced capital requirements, and minimized management distraction, while also allowing it to capitalize on the current strong gold price [11][9]. - Bellavista plans to raise approximately A$25 million to drive resource growth and a major exploration program at the Ontario Gold Assets [6][10].