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Investing.com -- Discovery (NASDAQ:WBD) Silver, a Canadian mining company, is preparing to expand its operations with a deal to purchase Newmont's Porcupine mining operations for up to $425 million. This acquisition will establish Discovery Silver as a new gold producer in Canada.
The Porcupine complex, located in Timmins, Ontario, is a significant addition to Discovery's portfolio. The complex is expected to increase the company's gold output to over 285,000 troy ounces in the coming decade.
This acquisition also diversifies Discovery's base, which until now was primarily focused on the Cordero silver development project in Mexico.
To fund the purchase and support the development work, Discovery has entered into a partnership with Franco-Nevada.
Newmont, the current owner of the Porcupine operations, has been offloading assets it deems non-essential following its takeover of Newcrest, an Australian mining company.
As per the terms of the deal, Newmont will receive $200 million in cash and $75 million worth of Discovery Silver shares upon the deal's closure.
Additionally, Newmont will receive a deferred payment of $150 million, which will be paid out in four annual installments starting at the end of 2027.
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