Discovery Silver Finalizes $425M Acquisition of Porcupine Gold Complex

A Major Step into Gold Production

Discovery Silver has completed its $425 million acquisition of the Porcupine gold mine complex in Ontario, Canada, from Newmont. This deal marks a key step in Discovery Silver’s expansion into gold production.

The agreement includes a $200 million cash payment, 119.7 million shares issued to Newmont, and $150 million in deferred payments over four years. Newmont now holds a 15% stake in Discovery Silver.

The acquired assets include the Hoyle Pond, Pamour, and Borden mines, as well as the Dome mine and mill. Located in the Timmins mining district, this complex positions Discovery Silver in one of Canada’s richest gold-producing regions.

This acquisition also complements Discovery Silver’s Cordero silver project in Mexico, creating a dual-asset precious metals portfolio, according to SuperMetalPrice.

Long-Life Asset with Strong Production Outlook

Discovery Silver will operate Porcupine as a long-life, multi-mine gold hub. A technical report assigns the complex a net present value of $1.2 billion. The company expects annual output to exceed 285,000 ounces of gold for the next decade.

The mine life stretches to at least 2046, based on current reserves. The Hoyle Pond underground mine, a key asset, has produced over 4 million ounces since the 1980s. The Pamour open-pit recently began production. The Borden mine, near Chapleau, holds growth potential through zone expansion.

The Dome mill, now underused, will help boost processing efficiency and reduce costs.

Discovery Silver Targets Tier 1 Asset Status

CEO Tony Makuch said the goal is to re-establish Porcupine as a Tier 1 global gold asset. The company will focus on responsible mining, operational excellence, and maintaining a strong balance sheet.

Discovery Silver recently raised C$240 million ($170 million) in new funding. That capital supports its operational plans and development strategy.

According to SuperMetalPrice, the acquisition strengthens Discovery Silver’s role in the gold and silver markets. The move also reflects increasing global demand for critical metals and stable precious metal output.