Precious metals company Discovery Silver has officially joined the ranks of Canadian gold producers with the closing of its acquisition of Newmont’s Porcupine operations in Ontario.

The transaction gives Discovery an immediate production foothold in the Timmins gold camp, home to more than a century of gold mining history, and complements its flagship Cordero silver project in Mexico.

The Porcupine complex, which has produced about 70-million ounces of gold since 1910, includes Hoyle Pond, Borden, Pamour, the historic Dome mine and the Dome Mill processing facility. 

Discovery CEO Tony Makuch said the portfolio of assets presented significant opportunities to increase output, improve margins and extend mine life.

“Our recently released technical report estimated average annual production of over 285 000 oz of gold for the next 10 years, with total production extending to 2046. We expect to improve on the estimates in the report by investing in the assets to grow production, extend mine life and lower costs at existing operations,” he said.

In the deal, Discovery paid an affiliate of Newmont $200-million in cash and issued about 119.7-million common shares, giving Newmont a 15% stake in the company. 

Discovery will also pay $150-million in deferred consideration through four equal yearly payments starting in December 2027.

Makuch, who previously led Kirkland Lake Gold, brings deep operating experience in the Timmins Camp. He said the company’s immediate focus would be on expanding production and enhancing asset value across the portfolio.

“Looking ahead, our aim is to re-establish Porcupine as a Tier 1 asset in the global gold industry, one that meets the highest operating standards and achieves excellence in all aspects of responsible mining. Our efforts will be supported by a strong balance sheet, with approximately C$240-million ($170-million) having been added to our cash position through our recent financings. As a management team, we know Porcupine well, have a solid understanding of the opportunities that exist, and are looking forward to getting started.”

To mark the milestone, Discovery launched a new corporate logo featuring the company name in blue, with the letter “V” stylised in gold and silver to reflect its dual exposure to both metals.