Discovery said it will acquire the operations for $200 million in cash, $75 million in common shares of Discovery and $150 million, to be paid in four equal annual cash payments starting Dec. 31, 2027.
To fund the transaction, Discovery entered into a financing package of $555 million, including $400 million related to royalty and debt agreements with mining company Franco-Nevada.
The Porcupine Complex, a group of mining operations, has an annual gold production of 260,000 ounces as of December 2023.
Discovery Silver’s shares rose 3% to $1.01 apiece on Monday morning in Toronto, for a market capitalization of C$402 million ($279.5 million).
Shares in Newmont fell 1% to $41.65 apiece in New York, giving it a market cap of $47.4 billion.
(With files from Reuters)
