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Discovery Announces Transformational Acquisition of Newmont’s Porcupine Complex

Transaction Details

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On January 27, 2025, Discovery Silver Corp, (TSX: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) announced that it has entered into a definitive agreement (the “Agreement”) to acquire from a wholly owned subsidiary of Newmont Corporation (“Newmont”) 100% of Newmont’s interest in its Porcupine Operations (the “Porcupine Complex” or “Porcupine”) based in and near Timmins, Ontario, Canada for total consideration of $425 million (the “Transaction”). 

The consideration to Newmont for the Transaction consists of $200 million in cash and $75 million payable in common shares of Discovery, both of which are payable upon closing of the Transaction, and $150 million of deferred consideration to be paid in four annual cash payments of $37.5 million commencing on December 31, 2027. 

To fund the Transaction and provide liquidity in support of operating and growing the Porcupine Complex, Discovery has entered into binding commitments for approximately $555 million of financing, including $400 million related to royalty and debt agreements with Franco-Nevada Corporation and approximately $155 million from a bought deal public offering of subscription receipts (out of which Franco-Nevada has agreed to participate for ~$50 million). 

All dollar amounts are in US dollars unless otherwise specified.

Fort Capital Partners is acting as a financial advisor to Discovery.