Parties
Company
Discovery Silver Corp.
Bank
BMO Nesbitt Burns Inc.
Company
SCP Resource Finance LP
Bank
CIBC World Markets Inc.
Company
Cormark Securities Inc.
Bank
National Bank Financial Inc.
Company
Raymond James Ltd.
Company
Ventum Financial Corp.
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.
Deal Type
Public/Private OfferingIndustry
MiningTransaction
$ 225,000,000Deal Status
ActiveClosing Date