Bellavista Resources has signed a binding share sale and purchase agreement to acquire a 70% stake in the Pickle Crow Gold Project from FireFly Metals, along with additional exploration assets in Ontario, Canada.
The acquisition, which includes an option to increase Bellavista's interest to 80%, is contingent upon shareholder approvals.
The Pickle Crow site has an inferred mineral resource of 2.8 million ounces (moz) at 7.2 grams per tonne (g/t) gold, as reported under the JORC Code 2012.
Under the agreement, Bellavista will take full ownership of Auteco Minerals (Canada), a wholly owned subsidiary of FireFly Metals, through the transfer of 60 million ordinary shares in Bellavista and performance rights valued at A$37.5m ($26.05m).
Additionally, Bellavista plans to secure full ownership of neighbouring tenements and the Sioux Lookout Project.
To realise its potential 80% interest in Pickle Crow, the company will need to pay C$3m ($2.19m) to First Mining Gold.
Bellavista intends to finance this acquisition through a capital raising effort, seeking approximately A$25m via a two-tranche share placement at A$0.75 per share.
The first tranche aims to generate around A$19m from 25.45 million shares, while the second tranche will be subject to additional shareholder approvals to raise up to A$6m from an extra 7.88 million shares.
The proceeds from this capital raising are earmarked for executing the PC Gold Earn-In and conducting extensive exploration activities at Pickle Crow and Sioux Lookout, as well as advancing exploration at Bellavista’s Brumby project in Western Australia.
Additional funds will cover acquisition and placement costs along with general corporate expenses.
Canaccord Genuity (Australia) is serving as the lead manager and bookrunner for this placement, with Euroz Hartleys and Argonaut Securities acting as co-managers.
FireFly Metals, then called AuTECO Minerals, previously acquired Green Bay copper-gold assets, shifting its focus from Pickle Crow in 2023 when gold prices were around $2,000/oz.
However, Bellavista sees significant exploration opportunities in both the Uchi and Wabigoon belts and plans aggressive exploration targeting shallow mineralisation post-acquisition.
Bellavista managing director Glenn Jardine said: “This acquisition will transform Bellavista into a substantial exploration company underpinned by a 2.8moz high-grade gold inferred mineral resource and leveraged exposure to outstanding gold prospective tenure.
“Exploration activities have been limited at Pickle Crow and the exploration prospects since 2023, during which time the gold price has more than doubled.”
