Discovery Announces Transformational Acquisition of Newmont's Porcupine Complex

Transaction Overview - Discovery Silver Corp has entered into a definitive agreement to acquire 100% of Newmont's interest in the Porcupine Complex for a total consideration of $425 million [3] - The consideration includes$200 million in cash, $75 million in Discovery common shares, and$150 million in deferred cash payments starting in 2027 [4] - The acquisition is expected to establish Discovery as a growing Canadian gold producer with a large mineral resource base in a Tier 1 jurisdiction [7] Financing Details - Discovery has secured approximately $555 million in financing to fund the transaction and support operations, including$400 million from Franco-Nevada and $155 million from a public offering [5] - The public offering involves 250 million subscription receipts at C$0.90 each, with an over-allotment option for an additional 25 million receipts [33] - Franco-Nevada will provide $200 million in royalty financing,$100 million in repayable royalty financing, and $100 million in senior debt [32][37] Porcupine Complex Highlights - The Porcupine Complex is expected to produce an average of 285,000 ounces of gold annually over the next 10 years, with a total mine life of 22 years [13] - The complex includes the Hoyle Pond, Borden, and Pamour mines, with significant opportunities to increase production and reduce costs [20] - The base case NPV for the Porcupine Complex is$1.2 billion, with a sensitivity case NPV of $2.3 billion at higher gold prices [12][13] Strategic Benefits - The acquisition diversifies Discovery's portfolio, reducing risk and providing leverage to both gold and silver prices [9] - The transaction positions Discovery to build substantial financial strength through future production from the Porcupine Complex [13] - Discovery's management team brings extensive experience in the Timmins Camp, which is expected to maximize the value of the Porcupine Complex [13][25] Technical and Economic Analysis - The Porcupine Technical Report includes a preliminary economic assessment with inferred mineral resources that are considered speculative [2][17] - The report highlights opportunities to grow production, reduce costs, and extend mine life at the Porcupine Complex [20] - Significant exploration potential exists across the 140,000-hectare land position, with plans for extensive drilling [20] Shareholder and Stakeholder Benefits - The transaction is expected to create significant value for shareholders through future operating performance and exploration potential [9] - Discovery plans to invest in site restoration and rehabilitation, ensuring the community can safely use the sites in the future [8][25] - The acquisition establishes Discovery as a new North American precious metals producer with a strong pipeline for growth [25]