FireFly Metals (ASX:FFM) anticipates distributing to its eligible shareholders one fully paid ordinary share in the capital of Bellavista Resources (ASX:BVR) for around every 12.8 fully paid ordinary shares held in Firefly as of May 4 via a pro rata in-specie distribution, based on the number of fully paid ordinary shares in the capital of Firefly on issue, according to a Monday Australian bourse filing.

FireFly agreed to sell a 70% interest in the Pickle Crow project and other exploration assets in Canada to Bellavista Resources, with Bellavista set to acquire all of the shares in the company's Auteco Minerals (Canada) unit for an upfront consideration of 60 million fully paid ordinary Bellavista shares and AU$37.5 million in Bellavista performance rights.

The return of capital is conditional upon the satisfaction of the conditions precedent to the transaction, including approval by shareholders of Firefly Metals and Bellavista, as well as the receipt of an Australian Taxation Office class ruling.

Shares of Firefly fell nearly 8% in recent trading on Monday, while those of Bellavista dropped 17%.