Discovery Silver has completed a transaction valued at up to $425 million to acquire the Porcupine Operations in Canada from Newmont, establishing itself as a gold producer in the prominent mining region near Timmins, Ontario. The deal, announced in January 2025, includes full ownership of the Porcupine Complex, encompassing the Hoyle Pond and Pamour mines, the Dome mine property and milling facility, and the Borden underground mine.

Discovery Silver completes acquisition of Porcupine Complex from Newmont.

The acquisition totals $350 million, with Discovery Silver paying $200 million in cash and issuing approximately 119.7 million common shares to a Newmont affiliate, granting Newmont a 15% stake in the company. An additional $150 million will be paid in four equal annual installments starting in December 2027. Discovery Silver aims to operate the Porcupine Complex as a long-term, multi-asset gold production hub.

A recent technical report estimates the Porcupine asset’s net present value at $1.2 billion, projecting an average annual gold output of over 285,000 ounces for the next decade, with operations extending to 2046. The acquisition complements Discovery Silver’s Cordero silver project in Mexico, expanding its operational presence in Canada.

The company plans to optimize the underutilized Dome mill’s processing capacity to enhance production efficiency and reduce costs. Discovery Silver CEO Tony Makuch stated: “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, a key asset, has produced over four million ounces of gold since the late 1980s and consistently replenishes its reserves. The Borden mine, located near Chapleau, offers growth potential through zone extensions and limited prior exploration. The Pamour open-pit mine has recently begun production, with ongoing exploration to evaluate further expansion. The Dome mine and its processing facility retain significant mineral resources and infrastructure capacity for increased throughput, supporting Discovery Silver’s long-term production goals.