KEY POINTS
- Discovery Silver acquires Porcupine operations for $425 million.
- The acquisition includes the Hoyle Pond, Pamour, Dome, and Borden mines.
- Newmont concludes its $4.3 billion divestiture program with this sale.
Discovery Silver Corp. has finalized the acquisition of Newmont Corporation’s Porcupine Complex near Timmins, Ontario, for $425 million.
This transaction is the culmination of Newmont’s strategic divestiture program, allowing the company to focus on Tier 1 assets while enabling Discovery Silver to enhance its portfolio.
Tom Palmer, President and CEO of Newmont, highlighted the significance of this sale, stating, “We are confident that Discovery will unlock Porcupine’s full potential while upholding responsible mining practices.”
The agreement comprises $200 million in cash, $75 million in Discovery shares issued at closing, and $150 million in deferred payments spread over four years starting in December 2027.
Discovery has secured a $555 million financing package to fund the acquisition and bolster operations, including contributions from Franco-Nevada Corporation and a public offering.
Discovery Silver’s plans for Porcupine’s future
Discovery Silver’s CEO, Tony Makuch, described the acquisition as a transformative step in the company’s mission to become a leading North American precious metals producer.
According to Mining Life, the Porcupine Complex, which includes the Hoyle Pond, Pamour, Dome, and Borden mines, is projected to produce over 285,000 ounces of gold annually for the next decade.
The company plans to pursue efficient operations while sustaining efforts and searching throughout its 140,000-hectare land package, according to Makuch.
He also highlighted Discovery’s strong ties to the Timmins community, stating, “Our leadership team has deep roots in the area, and we are dedicated to supporting local stakeholders, including First Nations communities.”
Discovery has outlined major financial commitments for environmental sustainability and site restoration approaches that produce enduring advantages for community members alongside ecological advantages.
Newmont concludes strategic divestiture program
The Porcupine sale marks the final chapter in Newmont’s divestiture program, which has generated $4.3 billion from non-core asset sales across Australia, Ghana, and North America. These proceeds have enabled Newmont to reduce debt and return capital to shareholders.
The transaction, expected to close in the first half of 2025, underscores Newmont’s focus on streamlining operations while allowing Discovery Silver to capitalize on the Porcupine Complex’s potential.
“This acquisition solidifies our growth strategy and positions us as a diversified, multi-asset company with a strong focus on responsible mining,” added Makuch.
