Discovery Silver to acquire Newmont's gold mining operations at Porcupine for $425M (updated)

Discovery Mining

27/01/2025 12:50

(Adds details and background in paragraph 2-5)
       Jan 27 (Reuters) - Gold miner Discovery Silver  DSV.TO 
said on Monday it would acquire its peer Newmont's  NEM.N  stake
in Porcupine Operations in Ontario, Canada, for $425 million.
    Newmont, after buying Australia-based 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 the 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 mining company Franco-Nevada
 FNV.TO .
    The Porcupine Complex, a group of mining operations, has an
annual gold production of 260,000 ounces as of December 2023.

 (Reporting by Tanay Dhumal in Bengaluru: Editing by Anil
D'Silva and Vijay Kishore)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))