Discovery Becomes Gold Producer with Porcupine Asset Deal Closed

Canadian-based Discovery finalizes acquisition of Porcupine Complex from Newmont, adding significant gold production and exploration ground in Timmins.

TORONTO – Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF) has officially completed its acquisition of the Porcupine Complex, previously operated by Newmont Corporation, marking a strategic transition for the company into a dual-metal producer with gold and silver operations across North America. The purchase establishes Discovery’s presence in one of Canada’s most prolific gold mining regions: the Timmins camp in Ontario.

Historical production and project components

The Porcupine site, known for producing approximately 70 million ounces of gold since the early 1900s, comprises several key operations including Hoyle Pond, Borden, Pamour, Dome Mine, and Dome Mill. According to Tony Makuch, Discovery’s CEO, the acquisition enables the company to advance as a diversified precious metals operator. He highlighted that "the Porcupine Complex has produced approximately 70 million ounces of gold since 1910," underlining its long-standing role in the country’s mining landscape.

The Hoyle Pond underground mine alone has delivered over four million ounces since 1987 and continues to show consistent reserve replacement. Borden, a newer operation within a vast 1,000 km² land package, offers expansion potential well beyond current mining zones. The Pamour open-pit site has begun production and is being assessed for growth through deeper drilling. Dome Mine, one of the most historically significant mines in Canadian gold history, retains a large resource base. Meanwhile, Dome Mill, the central processing plant, currently operates below its full capacity but is expected to ramp up as production scales.

Long-term production and financing strategy

Based on a recent technical assessment, Discovery estimates average annual gold production of more than 285,000 ounces over the next decade, with mine life projections extending to 2046. The company plans to improve operational efficiency and expand resource potential through targeted investments and exploration across the region.

To finance the $200 million cash portion of the transaction, along with $150 million in deferred payments and ongoing capital needs, Discovery secured a $575 million financing package. This included a public offering of 275 million subscription receipts, raising approximately C$247.5 million (about $175 million USD). Additionally, the firm retains access to an undrawn $100 million senior debt facility with Franco-Nevada. Following the financing, Discovery's cash position has grown by roughly C$240 million ($170 million USD).

New ownership structure and corporate identity

In connection with the transaction, Discovery issued approximately 119.7 million shares to an affiliate of Newmont, resulting in Newmont holding a 15% stake in the company. As of now, Discovery has 797.5 million common shares outstanding, with legacy shareholders owning just over half of the new total.

Alongside the acquisition, Discovery introduced a redesigned logo featuring the name “DISCOVERY” in blue and a gold-silver dual-tone “V,” symbolizing the company’s dual focus on both precious metals. This visual change aligns with its operational transformation into a cross-border producer with assets in both Canada and Mexico.

Company overview

Discovery Silver Corp. was previously known for its focus on silver through its wholly owned Cordero Project in Chihuahua, Mexico. With the closing of the Porcupine acquisition on April 15, 2025, the company now holds a dominant position in one of Ontario's largest gold camps. The company maintains a broad portfolio with exploration potential and established infrastructure, creating room for both near-term production and long-term growth.