Discovery Completes Acquisition of Porcupine Complex, Emerges as New Canadian-Based Gold Producer
Discovery Silver Corp (TSX: DSV, OTCQX: DSVSF) has completed the acquisition of Newmont's Porcupine Operations in Timmins, Ontario for $200 million in cash and 119.7 million shares, giving Newmont a 15% stake. The deal includes $150 million in deferred payments starting December 2027.
The acquired Porcupine Complex includes several key assets:
- Hoyle Pond: High-grade gold mine with 4M+ ounces produced since 1987
- Borden: New mine with 1,000 km² land position
- Pamour: Open-pit project starting production
- Dome Mine: Historic gold mine with large mineral resources
- Dome Mill: Central processing facility
The company secured a $575 million financing package and projects average annual production of 285,000 ounces of gold for the next 10 years, with production extending to 2046. Discovery's cash position increased by approximately C$240 million, with an additional undrawn $100 million senior debt facility with Franco-Nevada.
Discovery Silver Corp (TSX: DSV, OTCQX: DSVSF) ha completato l'acquisizione delle operazioni Porcupine di Newmont a Timmins, Ontario, per 200 milioni di dollari in contanti e 119,7 milioni di azioni, conferendo a Newmont una partecipazione del 15%. L'accordo prevede pagamenti differiti per 150 milioni di dollari a partire da dicembre 2027.
Il Complesso Porcupine acquisito comprende diversi asset chiave:
- Hoyle Pond: miniera d'oro ad alta qualità con oltre 4 milioni di once prodotte dal 1987
- Borden: nuova miniera con una superficie di 1.000 km²
- Pamour: progetto a cielo aperto in avvio di produzione
- Dome Mine: storica miniera d'oro con grandi risorse minerarie
- Dome Mill: impianto di lavorazione centrale
La società ha ottenuto un finanziamento da 575 milioni di dollari e prevede una produzione media annua di 285.000 once d'oro per i prossimi 10 anni, con una produzione estesa fino al 2046. La posizione di cassa di Discovery è aumentata di circa 240 milioni di dollari canadesi, con un'ulteriore linea di credito senior da 100 milioni di dollari non ancora utilizzata con Franco-Nevada.
Discovery Silver Corp (TSX: DSV, OTCQX: DSVSF) ha completado la adquisición de las operaciones Porcupine de Newmont en Timmins, Ontario, por 200 millones de dólares en efectivo y 119,7 millones de acciones, otorgando a Newmont una participación del 15%. El acuerdo incluye pagos diferidos por 150 millones de dólares a partir de diciembre de 2027.
El Complejo Porcupine adquirido incluye varios activos clave:
- Hoyle Pond: mina de oro de alta ley con más de 4 millones de onzas producidas desde 1987
- Borden: mina nueva con una extensión de 1.000 km²
- Pamour: proyecto a cielo abierto que inicia producción
- Dome Mine: mina histórica de oro con grandes recursos minerales
- Dome Mill: planta de procesamiento central
La compañía aseguró un paquete de financiamiento de 575 millones de dólares y proyecta una producción anual promedio de 285,000 onzas de oro durante los próximos 10 años, con producción extendida hasta 2046. La posición de efectivo de Discovery aumentó aproximadamente en 240 millones de dólares canadienses, con una línea de crédito senior adicional no utilizada de 100 millones de dólares con Franco-Nevada.
Discovery Silver Corp (TSX: DSV, OTCQX: DSVSF)는 온타리오주 팀민스에 위치한 Newmont의 Porcupine 운영권을 2억 달러 현금과 1억 1,970만 주의 주식으로 인수 완료하였으며, 이에 따라 Newmont는 15%의 지분을 보유하게 되었습니다. 이 거래에는 2027년 12월부터 시작되는 1억 5천만 달러의 연기 지급금도 포함되어 있습니다.
인수한 Porcupine 단지에는 다음과 같은 주요 자산들이 포함되어 있습니다:
- Hoyle Pond: 1987년 이후 400만 온스 이상의 고등급 금 생산 광산
- Borden: 1,000 km² 규모의 신규 광산
- Pamour: 생산을 시작하는 노천 광산 프로젝트
- Dome Mine: 대규모 광물 자원을 보유한 역사적인 금광
- Dome Mill: 중앙 처리 시설
회사는 5억 7,500만 달러의 금융 패키지를 확보했으며, 향후 10년간 연평균 285,000 온스의 금 생산을 예상하고 있으며 생산 기간은 2046년까지 연장될 예정입니다. Discovery의 현금 보유액은 약 2억 4천만 캐나다 달러 증가했으며, Franco-Nevada와 추가로 미사용 1억 달러의 선순위 부채 시설도 확보했습니다.
Discovery Silver Corp (TSX : DSV, OTCQX : DSVSF) a finalisé l'acquisition des opérations Porcupine de Newmont à Timmins, Ontario, pour 200 millions de dollars en espèces et 119,7 millions d'actions, donnant à Newmont une participation de 15 %. L'accord inclut des paiements différés de 150 millions de dollars à partir de décembre 2027.
Le Complexe Porcupine acquis comprend plusieurs actifs clés :
- Hoyle Pond : mine d'or à haute teneur avec plus de 4 millions d'onces produites depuis 1987
- Borden : nouvelle mine avec une superficie de 1 000 km²
- Pamour : projet à ciel ouvert en phase de démarrage de production
- Dome Mine : mine d'or historique avec d'importantes ressources minérales
- Dome Mill : installation centrale de traitement
La société a obtenu un financement de 575 millions de dollars et prévoit une production annuelle moyenne de 285 000 onces d'or pour les 10 prochaines années, avec une production prolongée jusqu'en 2046. La trésorerie de Discovery a augmenté d'environ 240 millions de dollars canadiens, avec une facilité de dette senior supplémentaire non utilisée de 100 millions de dollars avec Franco-Nevada.
Discovery Silver Corp (TSX: DSV, OTCQX: DSVSF) hat die Übernahme der Porcupine-Betriebe von Newmont in Timmins, Ontario, für 200 Millionen US-Dollar in bar und 119,7 Millionen Aktien abgeschlossen, wodurch Newmont einen Anteil von 15 % erhält. Der Vertrag beinhaltet aufgeschobene Zahlungen in Höhe von 150 Millionen US-Dollar, beginnend im Dezember 2027.
Der erworbene Porcupine-Komplex umfasst mehrere wichtige Vermögenswerte:
- Hoyle Pond: Hochgradige Goldmine mit über 4 Millionen Unzen Produktion seit 1987
- Borden: Neue Mine mit einer Landfläche von 1.000 km²
- Pamour: Tagebauprojekt, das die Produktion aufnimmt
- Dome Mine: Historische Goldmine mit großen Mineralressourcen
- Dome Mill: Zentrale Aufbereitungsanlage
Das Unternehmen sicherte sich ein Finanzpaket in Höhe von 575 Millionen US-Dollar und prognostiziert eine durchschnittliche Jahresproduktion von 285.000 Unzen Gold für die nächsten 10 Jahre, mit einer Produktionsdauer bis 2046. Die Liquiditätsposition von Discovery stieg um etwa 240 Millionen kanadische Dollar, zusätzlich steht eine ungenutzte Senior-Darlehensfazilität über 100 Millionen US-Dollar mit Franco-Nevada zur Verfügung.
- Acquisition transforms company into a significant gold producer with 285,000 oz annual production target
- Strong asset portfolio including high-grade Hoyle Pond mine and extensive land position
- Substantial financing package of $575M secured to fund acquisition and operations
- Significant exploration upside across all acquired assets
- Processing infrastructure in place with Dome Mill operating below capacity
- $150M in deferred payments due starting 2027 creates future financial obligations
- Substantial share dilution with 119.7M new shares issued
- Significant debt taken on through financing package
- Mill operating below capacity indicates operational inefficiencies to address
- Growing gold production in one of the world’s most prolific mining camps
- Large Mineral Resource base with substantial exploration upside
- A management team with extensive experience working in the Timmins Camp
- Increased financial strength following closing of
$575 million financing package
TORONTO, April 16, 2025 (GLOBE NEWSWIRE) -- Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) today reported the completion of the previously announced acquisition (the “Transaction”) of Newmont Corporation’s (“Newmont”) Porcupine Operations (the “Porcupine Complex” or “Porcupine”) based in and near Timmins, Ontario, Canada. All dollar amounts in this press release are in US dollars unless otherwise specified.
Tony Makuch, Discovery’s CEO, commented: “With the closing of the Porcupine acquisition, Discovery moves forward as a diversified North American precious metals company, combining growing gold production in a highly prolific gold camp in Northern Ontario, Canada, with our Cordero project, one of the world’s largest silver development projects based on reserves and expected production.
“The Porcupine Complex has produced approximately 70 million ounces of gold since 1910. Included in acquired Porcupine assets are:
- Hoyle Pond: One of the North America’s highest grade gold mines with over four million ounces produced since 1987 and an excellent track record for replacing reserves;
- Borden: A relatively new mine at the centre of a 1,000 km2 land position where there is potential to extend the existing mining zones and where there has been very little exploration outside of the current mining area;
- Pamour: An open-pit project that is currently commencing production and has the potential to become much larger through drilling to depth and in multiple directions;
- Dome Mine: One of the pillars of Canada’s gold mining history, where there remains a large mineral resource and substantial exploration upside; and,
- Dome Mill: A large-scale, central processing facility currently operating below capacity levels and with significant growth potential to accommodate increased production.
“Our recently released technical report (the “Report”) estimated average annual production of over 285,000 ounces of gold for the next 10 years, with total production extending to 2046. We expect to improve on the estimates in the Report by investing in the assets to grow production, extend mine life and lower costs at existing operations. We also have a strong commitment to exploration, with there being multiple attractive drill targets at each asset and significant regional exploration potential.
“Looking ahead, our aim is to re-establish Porcupine as a Tier 1 asset in the global gold industry, one that meets the highest operating standards and achieves excellence in all aspects of responsible mining. Our efforts will be supported by a strong balance sheet, with approximately C
As consideration for the Transaction, Discovery has paid an affiliate of Newmont
To fund the acquisition and expected capital expenditures and working capital requirements at Porcupine, and for general corporate and working capital purposes, Discovery has completed financings for
Exchange of Subscription Receipts
As part of the Financing Package, on February 3, 2025, Discovery completed a "bought deal" public offering (the "Offering") of 275,000,000 subscription receipts (the "Subscription Receipts") for aggregate gross proceeds of C
With the closing of the Transaction, the common shares of Discovery issuable pursuant to the 275,000,000 Subscription Receipts will be automatically issued through the facilitates of CDS Clearing and Depository Services Inc. in accordance with the terms of the Subscription Receipts, as applicable, on a one-for-one basis.
Consistent with established Toronto Stock Exchange ("TSX") guidelines, trading in the Subscription Receipts on the TSX (TSX: DSV.R) will be halted effective prior to the opening of trading on the TSX today (April 16, 2025), and the Subscription Receipts will be delisted as at the close of business today.
Discovery Capital Structure
With the completion of the Transaction, and following the execution of all financing agreements, Discovery capital structure includes 797.5 million common shares outstanding, with existing shareholders prior to the Transaction owning approximately
After receipt of all cash from the Financing Package, Discovery’s cash position has increased approximately C
NEW LOGO
With the closing the Porcupine acquisition, the Company today launched a new logo, with the “DISCOVERY” name in blue and the letter “V” including both gold and silver. The logo highlights Discovery’s position as a growing North American precious metals company providing shareholders with significant exposure to both gold and silver prices.
USE OF PEA ESTIMATES
All operating estimates in this press release related to the Porcupine Complex are taken from the technical report entitled, “Porcupine Complex, Ontario, Canada, Technical Report on Preliminary Economic Assessment” (the “PEA”), filed under the Company’s profile at SEDAR+ (www.sedarplus.ca) on January 28, 2025 and available on Discovery’s website at www.discoverysilver.com. The report includes the results of a preliminary economic assessment which is preliminary in nature. It includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the estimates will be realized.
ABOUT DISCOVERY
Discovery is a growing North American-focused precious metals company. The Company has exposure to silver through its first asset, the
On Behalf of the Board of Directors,
Tony Makuch, P.Eng
President, CEO & Director
For further information contact:
Mark Utting, CFA
VP Investor Relations
Phone: 416-806-6298
Email: mark.utting@discoverysilver.com
Website: www.discoverysilver.com
QUALIFIED PERSONS
Mr. Pierre Rocque, P.Eng. and Eric Kallio, P.Geo., “Qualified Persons” as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects, have reviewed and approved the scientific and technical information included in this press release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All information, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company's businesses, operations, plans and other such matters are forward-looking information.
When used in this press release, the words "estimate", "plan", "continue", "anticipate", "might", "expect", "project", "intend", "may", "will", "shall", "should", "could", "would", "predict", "predict", "forecast", "pursue", "potential", "believe" and similar expressions are intended to identify forward-looking information. This information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such forward-looking information include information pertaining to, without limitation, statements with respect to: the upside potential of Porcupine; the operational and financial estimates included in the PEA; the potential to improve on the PEA estimates, including the potential to increase production, reduce costs and extend mine life at the Hoyle Pond and Borden underground mines, optimize and expand the Pamour open-pit project and complete the work needed to upgrade existing mineral resources, as well as identify new mineral resources, at Dome Mine; regional exploration potential; investing to re-establish Porcupine as a Tier 1 asset in the global gold industry; the ability to generate substantial value for all stakeholder groups; the timing related to the exchange of Subscription Receipts for underlying common shares, the trading halt and subsequent delisting of the Subscription Receipts and the listing of the underlying common shares; other statements relating to the financial and business prospects of the Company; information as to the Company's strategy, plans or future financial or operating performance; and other events or conditions that may occur in the future.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include, among others: the Company's ability to obtain the anticipated benefits from the Transaction; the Company's ability to integrate Porcupine into the Company's operations; the accuracy of financial and operational estimates for Porcupine; the ability to repay the debt financing components of the Franco-Nevada Financing Package; statements or information concerning the future financial or operating performance of the Company and its business, operations, properties and condition, resource potential, including the potential quantity and/or grade of minerals, or the potential size of a mineralized zone; potential expansion of mineralization; the timing and results of future resource and/or reserve estimates; the timing of other exploration and development plans at the Company's mineral project interests; the proposed timing and amount of estimated future production and the illustrative costs thereof; requirements for additional capital; environmental risks; general business and economic conditions; delays in obtaining, or the inability to obtain, third-party contracts, equipment, supplies and governmental or other approvals; changes in law, including the enactment of mining law reforms in Mexico; accidents; labour disputes; unavailability of appropriate land use permits; changes to land usage agreements and other risks of the mining industry generally; the inability to obtain financing required for the completion of exploration and development activities; changes in business and economic conditions; international conflicts; other factors beyond the Company's control; and those factors included herein and elsewhere in the Company's public disclosure.
Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended. See the section "Risk Factors" in the Company's annual information form dated as of March 26, 2025, for the financial year ended December 31, 2024, for additional risk factors that could cause results to differ materially from forward-looking statements.
There can be no assurance that such information will prove to be accurate as actual developments or events could cause results to differ materially from those anticipated. These include, among others, the factors described or referred to elsewhere herein, and include unanticipated and/or unusual events. Many of such factors are beyond the Company's ability to predict or control.
The forward-looking information included in this press release is expressly qualified by the foregoing cautionary statements. Readers of this press release are cautioned not to put undue reliance on forward-looking information due to its inherent uncertainty. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, unless required under applicable laws. This forward-looking information should not be relied upon as representing management's views as of any date subsequent to the date of this press release.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b75189dd-f41a-4c7b-8d3c-e9cd139b906d
FAQ
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