TORONTO — Newmont Corp. has signed a deal to sell its Porcupine operation in Ontario to Discovery Silver Corp. in an agreement worth US$425 million.
The Porcupine Complex includes the Hoyle Pond and Pamour mine properties and the Dome mine property and milling facility in Timmins, Ont., as well as the Borden underground mining operation near Chapleau, Ont.
Under the deal, Newmont will be paid US$$200 million in cash and US$75 million in shares of Discovery when the deal closes.
Newmont will also receive US$150 million in deferred consideration to be paid in four annual cash payments of US$37.5 million starting on Dec. 31, 2027.
Discovery owns the Cordero silver project in Mexico.
To help pay for the Porcupine deal and support operating and growing the operation, the company has signed deals to raise US$555 million including US$400 million in royalty and debt agreements with Franco-Nevada Corp. and a US$155 million bought deal offering of subscription receipts.
This report by The Canadian Press was first published Jan. 27, 2025.
Companies in this story: (TSX:DSV, TSX:NGT, TSX:FNV)
The Canadian Press