Discovery Silver Corp. (“Discovery Silver”) completed the acquisition of Newmont Corporation’s Porcupine Operations (the “Porcupine Mining Complex”), located in Timmins, Ontario for US$425 million. The deal includes US$200 million in cash, US$75 million in Discovery shares, and US$150 million in deferred payments over four years.
To fund the acquisition, capital expenditures and working capital requirements at Porcupine, Discovery Silver completed a $247.5-million bought deal public offering of 275,000,000 subscription receipts.
The acquisition of Porcupine Mining Complex establishes Discovery Silver as a new growing Canadian gold producer with a large Mineral Resource in a Tier 1 jurisdiction with significant operational and exploration upside potential.
Bennett Jones LLP acted as counsel to Discovery Silver. The Bennett Jones team was co-led by Sander Grieve and Linda Misetich Dann (M&A and Mining) and included Benjamin Gal, Pardeep Brar (M&A and Mining), David Bursey (Aboriginal Law), Jane Helmstadter, Samantha Weng, Samuel Judson, Vanessa Kiraly (real estate), Len Griffiths (Environmental), Philip Ward (Tax), Susan Seller (Pensions), Zee Derwa (Competition), Katelyn Weller and Madison Stemmler (Employment).
Goodmans LLP acted as legal counsel to Newmont, with BMO Capital Markets as financial advisor.