Firefly Metals (ASX:FFM) has signed a binding agreement to acquire the Tilt Cover Copper–Gold Project in Newfoundland, Canada from Signal Gold (TSX-V:SGNL).
The Tilt Cove Project covers 115km2 and sits immediately adjacent to Firefly’s Green Bay Copper-Gold Project.
Firefly Metals, which has a market capitalisation of $713.35 million, says this deal strengthens its regional landholding, growing the Green Bay Project to 326km2.
Under the share purchase agreement, Firefly will pay C$570,000 ($620,754) cash and issue C$2.5 million worth of shares to Signal Gold’s wholly owned subsidiary Tilt Cove Gold Corp.
The shares will be issued at a price equal to the 10-day volume weighted average price of the shares on the ASX prior to the date of signing the agreement.
An additional C$1 million will be payable in cash or shares upon Firefly defining a mineral resource of at least 500,000 ounces of gold-equivalent at a minimum grade of 1 gram per tonne.
Managing Director Steve Parsons says the Tilt Cove project is a “compelling” geological setting that offers another potential avenue for substantial resource growth.
“This is a golden opportunity to secure a large parcel of compelling exploration tenure right next to our Green Bay Project,” Parsons says.
“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.”
The Tilt Cove Property is considered prospective for volcanogenic massive sulphide (VMS) deposits similar to Firefly’s Ming Mine, where the resource was recently increased to 59 million tonnes at 2% copper-equivalent. Tilt Cove also contains potential for “high-grade” orogenic-style gold mineralisation.
A key target within the acquisition area is the Tilt Cove copper-gold VMS deposit, which was considered to be “one of the world’s largest copper mines” in the late 19th century.
Between 1864 and 1917, 170,000 tonnes of copper and 50,000 ounces of gold was mined.
Firefly Metals is an emerging copper-gold explorer focused on advancing its Green Bay Project in Newfoundland, Canada. The company also holds a 70% interest in the Pickle Crow Project in Ontario and a 90% interest in the Limestone Well Vanadium-Titanium Project in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Firefly Metals
