Discovery Silver to acquire Porcupine Complex in Timmins, Ontario for $425m

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has announced a transformational acquisition, securing full ownership of Newmont Corporation’s in , Ontario, for $425 million. This landmark deal marks a significant step in Discovery Silver Corp.’s expansion strategy, reinforcing its position as a Canadian gold producer and positioning the company for long-term gold mining investment growth.

The acquisition brings a major mineral resource base, strong production potential, and a robust financing package to support future development. Discovery Silver Corp. aims to enhance operational efficiency, increase production, and unlock exploration upside within one of the world’s most prolific gold mining regions.

Why is the Porcupine Complex Acquisition a Game-Changer for Discovery Silver Corp.?

The Porcupine Complex acquisition adds significant scale to Discovery Silver Corp.’s operations, allowing the company to establish itself as a leading gold producer in Canada. The Timmins mining camp has historically produced over 70 million ounces of gold, with substantial untapped reserves and exploration opportunities.

Through this transaction, Discovery Silver Corp. acquires:

  • Hoyle Pond – A high-grade underground gold mine known for its strong resource replacement potential
  • Pamour – A developing open-pit project expected to produce approximately 150,000 ounces annually
  • Borden – A low-cost, modern underground operation with growth potential
  • Dome Mine – A historic mining site with 11 million ounces of inferred resources

By integrating these assets, Discovery Silver Corp. is securing a long-term production base that will drive operational efficiencies and financial growth.

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How Will Discovery Silver Corp. Fund the $425M Acquisition?

To finance the Porcupine Complex acquisition, Discovery Silver Corp. has structured a $555 million financing package, ensuring financial stability while maintaining flexibility for future investment. The funding includes:

  • $400 million from Franco-Nevada Corporation, provided through royalty and debt agreements
  • $155 million from a public offering, underwritten by BMO Capital Markets and SCP Resource Finance LP

Franco-Nevada Corporation’s commitment includes:

  • A 2.25% net smelter return royalty valued at $200 million
  • A 2.00% repayable royalty worth $100 million, with potential for early repayment
  • A $100 million senior debt facility, offering Discovery Silver Corp. additional liquidity

With this financing secured, Discovery Silver Corp. can not only complete the acquisition but also invest in mine development, exploration, and operational improvements across the Porcupine Complex.

What Are the Long-Term Benefits of This Gold Mining Investment?

The acquisition is expected to generate substantial free cash flow, with a net present value (NPV) of $1.2 billion under conservative gold price estimates. In a higher gold price scenario of $2,650 per ounce, the NPV could increase to $2.3 billion, representing a 23% upside.

Production forecasts indicate:

  • 285,000 ounces per year over the next decade
  • A total mine life of 22 years, ensuring sustained gold output
  • Additional production potential if inferred resources at Dome Mine are upgraded

By expanding its Canadian gold mining footprint, Discovery Silver Corp. is creating a diversified precious metals portfolio, balancing its Cordero silver project in with a high-growth gold asset in Canada.

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How Will Discovery Silver Corp. Optimize Operations at the Porcupine Complex?

Discovery Silver Corp.’s leadership team, led by CEO Tony Makuch, brings extensive experience in the Timmins mining camp, having successfully managed and developed gold assets in the region. Makuch, a Timmins native, previously led Lake Shore Gold, which built and operated the Timmins West Mine, the first major new mining development in the area in over 20 years.

Discovery Silver Corp.’s plan for the Porcupine Complex includes:

  • Expanding high-grade ore extraction at Hoyle Pond through automation and infrastructure upgrades
  • Improving haulage and ventilation at Borden to enhance efficiency and reduce costs
  • Advancing the Pamour open-pit project, expected to become a key production asset
  • Assessing the potential to restart mining operations at Dome Mine, leveraging its large inferred resource base

Additionally, Discovery Silver Corp. is prioritizing sustainable mining practices, with significant investments planned for site reclamation and environmental rehabilitation. The company has already earned Mexico’s Quality Environmental Certification for its responsible mining approach and aims to uphold similar standards in Canada.

What Does This Mean for Discovery Silver Corp. Shareholders and the Gold Market?

For shareholders, the Porcupine Complex acquisition positions Discovery Silver Corp. as a high-growth Canadian gold producer with strong financial backing and a long-term gold production outlook. The deal:

  • Increases Discovery Silver Corp.’s leverage to rising gold prices, a crucial factor amid market volatility
  • Enhances diversification by adding a tier-one gold asset to its existing silver-focused portfolio
  • Improves financial stability, backed by a robust financing strategy and strategic partnerships
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As Discovery Silver Corp. transitions from a gold and silver developer to a full-scale producer, its market valuation could experience a significant re-rate, aligning more closely with mid-tier gold mining companies.

What’s Next for Discovery Silver Corp. and the Porcupine Complex?

Discovery Silver Corp. expects the transaction to close in the first half of 2025, subject to regulatory approvals from:

  • The Toronto Stock Exchange (TSX)
  • Canada’s Competition Act authorities
  • Ontario’s Ministry of Mines

With the Porcupine Complex acquisition, Discovery Silver Corp. is cementing its status as a major player in Canadian gold mining, leveraging its expertise and financial strength to drive long-term value for investors. As the company integrates these assets, it is set to unlock new opportunities, strengthen relationships with First Nations communities, and establish a sustainable mining legacy in Timmins.


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