Lionsgate and Blumhouse are headed back to the woods for a new Blair Witch Project movie.

Its part of a multifilm deal between the studios that will see Blumhouse reimagine horror classics from Lionsgate. The deal follows the duo collaborating on Imaginary, which has earned $38.2 million since release last month.

1999s Blair Witch Project is considered one of the most profitable films of all time. Made for $35,000, it would go on to gross $249 million globally (postproduction costs put its budget closer to $200,00 to $500,000). It ushered in a found-footage movie boom and spawned a 2001 sequel and a 2016 follow-up. Roy Lee, who produced the 2016 film, is back for the new installment. Lionsgate film chair Adam Fogelson and Jason Blum announced the news.

I have been incredibly fortunate to work with Jason many times over the years. We forged a strong relationship onThe Purgewhen I was at Universal, and we launched STX with his filmThe Gift.There is no one better at this genre than the team at Blumhouse, said Fogelson. We are thrilled to kick this partnership off with a new vision forBlair Witchthat will reintroduce this horror classic for a new generation.

Blum gave a nod to Blair Witch for helping kick open the door for his own found-footage hit Paranormal Activity, saying, I dont think there would have been aParanormal Activityhad there not first been aBlair Witch, so this feels like a truly special opportunity and Im excited to see where it leads.