Australian Securities Exchange (ASX)-listed mining company FireFly Metals has announced the acquisition of the Tilt Cove exploration property in Newfoundland, Canada, from Signal Gold.
The deal, which includes a cash payment of C$570,000 ($620,754) and the issuance of C$2.5m worth of FireFly shares, will see the company's land holding at the Green Bay project increase by 54% to approximately 326km².
The shares will be issued at the ten-day volume-weighted average price on the ASX prior to the agreement's signing.
An additional C$1m will be payable in cash or shares once Firefly defines a mineral resource of at least 500,000oz of gold-equivalent at a minimum grade of 1g per tonne.
The Tilt Cove property, adjoining FireFly's existing operations, is known for its potential for volcanogenic massive sulphide (VMS) deposits, akin to the company's Ming mine.
The property has a long history as a copper producer, with operations dating back to the late 19th century.
The site's historical output of approximately 170,000 tonnes of copper and 50,000oz of gold, combined with its potential for high-grade orogenic-style gold mineralisation, positions FireFly for a major step-up in its exploration efforts.
The acquisition's key target, the Tilt Cove copper-gold VMS deposit, represents a notable opportunity for FireFly.
The deposit's past as one of the world's largest copper mines enhances the project's prospects for future exploration and development.
FireFly managing director Steve Parsons said: “This is a golden opportunity to secure a large parcel of compelling exploration tenure right next to our Green Bay project.
“Tilt Cove’s mining is a compelling geological setting, which offers another potential avenue for substantial resource growth.
“We will move quickly to apply our exploration skills and local knowledge at Tilt Cove as part of our overall strategy to keep growing the resource at Green Bay.”
In September this year, FireFly Metals secured binding commitments to raise A$65m through a placement to support the next phase of development at its Green Bay Copper-Gold project.
