Transformational Acquisition Has Shares Of This Miner Surging Higher

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Monday, January 27, 2025

Today has certainly been a risk-off day on the markets as AI related news out of China shook the North American tech sector.  This ripple made its way into other asset classes, with gold, silver, copper, crude oil and cryptos all sliding on the day.

One stock that has bucked the overall trend, for good reason, was Discovery Silver Corp. (TSX: DSV) (OTCQX: DSVSF). Shares of Discovery are on the move higher as the company announced that it has entered into a definitive agreement to acquire from a wholly owned subsidiary of Newmont Corporation 100% of Newmont’s interest in its Porcupine Operations based in and near Timmins, Ontario, Canada for total consideration of $425 million USD.

To fund this Transaction and provide liquidity in support of operating and growing the Porcupine Complex, Discovery has entered into binding commitments for approximately $555 million of financing, including $400 million related to royalty and debt agreements with Franco-Nevada Corporation and approximately $155 million from a bought deal public offering of subscription receipts. 

Tony Makuch, Discovery’s CEO, commented: “The acquisition of the Porcupine Complex is an important step forward as we work to build a highly profitable precious metals producer. Through this acquisition, we are combining growing gold production at Porcupine with tremendous upside, in one of the world’s great gold camps, with our Cordero project, one of the industry’s leading silver development projects based on reserves and expected production.

Investors love the deal, and even in this sea of red for most asset classes, shares of DSV are currently up 14.29% at $1.12, while U.S. listed shares rally 15.27% at $0.78 in mid-morning trading.

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