Sale of Ontario gold assets completes

FireFly Metals Ltd. has finalized the sale of its Ontario gold assets, comprising a 70% interest in the Pickle Crow Project and a 100% interest in the Sioux Lookout Project, to Bellavista Resources Ltd. The transaction was structured through the sale of Auteco Minerals (Canada) Pty Ltd share capital and the assignment of intercompany loans.

The deal includes upfront consideration consisting of 60 million Bellavista shares, alongside contingent consideration of 50 million performance rights retained by FireFly. An in-specie distribution will be made to FireFly shareholders at a ratio of approximately 1 Bellavista share for every 12.8 FireFly shares held. The record date for this distribution is May 4, 2026, with the expected distribution and trading commencement scheduled for May 11 and May 12, 2026, respectively. To prevent delays, the Board waived the condition requiring an Australian Taxation Office Class Ruling, allowing the transaction to proceed on a return of share capital basis.

FireFly Metals Ltd. (FFM) has completed the transaction announced in February 2026, which received shareholder approval in April 2026. The terms of the deal were known for months, limiting any immediate surprise upside. The sale removes non-core Ontario gold assets, allowing management to focus capital on the Green Bay Copper-Gold Project. This move aligns with the strategic pivot announced earlier in the year.

Shareholders receive direct exposure to Bellavista Resources, a gold producer, without dilution of their FireFly holding, effectively unlocking value from the asset sale immediately. However, 50 million performance rights are retained by FireFly contingent on Bellavista hitting milestones, including drilling, resource, and production targets. If these milestones fail, potential upside is capped at the upfront consideration.

The market likely priced in the completion following shareholder approval on April 23, 2026. Stock price action leading up to April 29 suggests expectations were met rather than exceeded.

FireFly Metals Ltd is an Australian-based mining company focused on copper-gold development in Canada. Its flagship asset is the Green Bay Copper-Gold Project in Newfoundland, which has experienced significant resource growth, including a 51% increase in CuEq metal, alongside high-grade drilling results that confirm a world-class deposit. The company is currently in the advanced exploration and pre-feasibility stage for Green Bay, with metallurgical testing demonstrating high recoveries of greater than 98% for copper. To streamline its portfolio and focus on Green Bay, FireFly Metals has divested its Ontario Gold Assets, specifically Pickle Crow and Sioux Lookout, to Bellavista Resources.