Discovery Silver to acquire Newmont’s Porcupine operations for $425m
Discovery Silver (TSE: DSV) said on Monday it would acquire Newmont Gold’s (NYSE: NEM, TSE: NGT) stake in Porcupine operations in Ontario, Canada, for $425 million.
Newmont, after buying Australian miner Newcrest for $17.14 billion, announced in February 2024 it would divest non-core assets and trim its workforce to cut debt.
Discovery said it will acquire Porcupine operations for $200 million in cash, $75 million in common shares of Discovery and $150 million, to be paid in four equal annual cash payments starting Dec. 31, 2027.
To fund the transaction, Discovery entered into a financing package of $555 million, including $400 million related to royalty and debt agreements with Franco-Nevada.
The Porcupine complex had an annual gold production of 260,000 ounces as of December 2023.
Discovery Silver’s shares surged 18% by midday Monday in Toronto, for a market capitalization of C$460 million ($320 million).
Newmont shares fell 1% to $41.65 apiece in New York, giving it a market cap of $47.4 billion.
(With files from Reuters)
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