Discovery Mining, through its wholly owned subsidiary, has signed an asset purchase agreement to acquire certain mineral properties in the Timmins region from McEwen subsidiaries for a total consideration of $55m.
The package includes $50m payable in Discovery common shares and $5m in cash.
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The assets to be acquired are adjacent to Discovery’s Dome Mine and include the Fuller project as well as a 60% stake in the Paymaster Joint Venture.
This acquisition is intended to support plans for increased gold production in the Timmins camp and provides an expanded land position contiguous with the Dome Mine.
The expansion is expected to facilitate potential future development at the Dome Mine, including possible sites for processing and tailings infrastructure.
In conjunction with the acquisition, Discovery Mining has also reached an agreement with Franco-Nevada Canada, a subsidiary of Franco-Nevada, to amend an existing royalty agreement.
On completion of the transaction, Franco-Nevada’s royalty interest will extend to the newly acquired properties in exchange for an $8m payment to Discovery.
The amendment relates to the royalty agreement entered into regarding the Porcupine Operations in April 2025.
Discovery president and CEO Tony Makuch said: “The transaction announced today is an important step forward as we continue to establish the land position needed to achieve our extensive growth plans in the Timmins Camp.
“In addition to further exploration upside, a key benefit of the land being acquired is that it provides an ideal location for potential new processing and tailings facilities to support large-scale production from our Dome Mine.
“Dome has an 11 million ounce inferred resource and we are working on plans to resume operations over the next five years using the existing Dome Mill for processing. Longer-term, we will look to operate the mine at a significantly higher level of production using a new processing facility to be located at the adjacent purchased assets.”
The closing of the asset purchase is anticipated in October 2026, subject to several conditions.
These include the transfer of the relevant properties and claims, extinguishment of the current net profits interest royalty on the Fuller project, regulatory approvals, and approval from the Toronto Stock Exchange concerning the issuance of new common shares.
