Discovery Silver launches $225 million subscription receipt offering to fund Porcupine acquisition

Company

Discovery Silver Corp.

Law Firm / Organization
Bennett Jones LLP

Bank

BMO Nesbitt Burns Inc.

Law Firm / Organization
McMillan LLP

Company

SCP Resource Finance LP

Law Firm / Organization
McMillan LLP

Bank

CIBC World Markets Inc.

Law Firm / Organization
McMillan LLP

Company

Cormark Securities Inc.

Law Firm / Organization
McMillan LLP

Bank

National Bank Financial Inc.

Law Firm / Organization
McMillan LLP

Company

Raymond James Ltd.

Law Firm / Organization
McMillan LLP

Company

Ventum Financial Corp.

Law Firm / Organization
McMillan LLP

On January 29, 2025, Discovery Silver Corp. announced a $225 million subscription receipt offering to partially fund its $425 million acquisition of the Porcupine Complex from a subsidiary of Newmont Corporation. The offering consists of 250 million subscription receipts at $0.90 each, with each receipt convertible into one common share upon closing of the acquisition. Gross proceeds will be held in escrow by TSX Trust Company and released upon satisfaction of closing conditions.

The underwriters, co-led by BMO Nesbitt Burns Inc. and SCP Resource Finance LP, also include CIBC World Markets Inc., Cormark Securities Inc., National Bank Financial Inc., Raymond James Ltd., and Ventum Financial Corp. The underwriters will receive a 5% fee on gross proceeds, except for 2% on Franco-Nevada’s 76.4 million receipts. The proceeds, combined with a $400 million Franco-Nevada financing package, will fund the cash portion of the acquisition, capital expenditures, and working capital for the Porcupine Complex.

Bennett Jones LLP advised Discovery Silver, while McMillan LLP represented the underwriters. The offering is expected to close on February 3, 2025, subject to regulatory approvals.

Public/Private Offering
Mining
$ 225,000,000
Active