Parties
Company
Discovery Silver Corp.
Company
Newmont Corporation
Company
Franco-Nevada Corporation
On January 27, 2025, Discovery Silver Corp. (TSX: DSV) agreed to acquire Newmont Corporation’s (NYSE: NEM, TSX: NGT) Porcupine Complex in Timmins, Ontario, for up to US$425 million ($610 million). The deal includes US$200 million in cash, US$75 million in Discovery shares, and US$150 million in deferred payments over four years.
Discovery secured US$555 million ($797 million) in financing, including US$400 million ($575 million) from Franco-Nevada and US$155 million (C$222 million) from a public offering. Franco-Nevada’s financing package includes a net smelter return royalty, a senior secured term loan, and an equity investment. Torys is acting as counsel to Franco-Nevada in connection with this financing.
The acquisition strengthens Discovery as a gold producer with over 285,000 ounces in annual production. Newmont’s sale is part of its US$4.3 billion divestiture of non-core assets. The transaction, expected to close in H1 2025, is subject to regulatory approvals.
BMO Capital Markets advised Newmont, with Goodmans LLP as legal counsel. Discovery was advised by SCP, Fort Capital Partners, and Bennett Jones LLP, with CIBC assisting its special committee. Cassels Brock & Blackwell LLP represented Discovery in relation to the Franco-Nevada financing.
Deal Type
Merger & AcquisitionIndustry
MiningTransaction
$ 610,000,000Deal Status
ActiveClosing Date