Discovery Silver has concluded its previously announced transaction worth up to $425m to acquire the Porcupine Operations in Canada from Newmont.
The deal positions Discovery Silver as a new gold producer operating in the prolific mining region surrounding Timmins, Ontario.
The transaction, first announced in January 2025, includes full ownership of the Porcupine Complex, which comprises the Hoyle Pond and Pamour mines, the Dome mine property and milling facility, and the Borden underground mine.
The acquisition is valued at a total of $350m, with Discovery Silver paying $200m in cash and issuing approximately 119.7 million common shares to an affiliate of Newmont.
The share issuance grants Newmont an estimated 15% ownership stake in Discovery Silver. An additional $150m in deferred cash payments will be made in four equal annual instalments beginning in December 2027.
Discovery Silver stated it plans to operate the Porcupine Complex as a long-life, multi-asset gold production hub.
The company cited a net present value of $1.2bn for the Porcupine asset based on a recent technical report. As per the report, the average annual output is estimated to be more than 285,000 ounces of gold over the next decade, with a mine life extending to 2046.
The acquisition expands Discovery Silver’s operational footprint across Canada, complementing its Cordero silver project in Mexico.
The company intends to leverage the processing capacity of the existing Dome mill, which it said is currently underutilised, as part of a broader strategy to improve production efficiency and lower operational costs.
Discovery Silver CEO Tony Makuch said: “Looking ahead, our aim is to re-establish Porcupine as a Tier 1 asset in the global gold industry, one that meets the highest operating standards and achieves excellence in all aspects of responsible mining.
“Our efforts will be supported by a strong balance sheet, with approximately C$240m ($170m) having been added to our cash position through our recent financings. As a management team, we know Porcupine well, have a solid understanding of the opportunities that exist, and are looking forward to getting started.”
The Hoyle Pond underground mine, one of the key components of the acquisition, has produced over four million ounces of gold since the late 1980s and maintains a record of reserve replacement.
The Borden mine, located near Chapleau, offers further upside with the potential for zone extension and minimal prior exploration beyond the currently developed area. The Pamour open-pit operation has recently started production, with exploration underway to assess further growth potential.
The Dome mine and processing facility continue to hold mineral resources and infrastructure capacity for expanded throughput.
