Newmont sells Greatland, Discovery Silver shares for $470 million

Newmont Corp. [NGT-TSX, NEM-NYSE, ASX, PNGX] has executed agreements for the sale of shares in Greatland Resources Ltd. [GGP-ASX, AIM] and Discovery Silver Corp. [DSV-TSXV, DSVSF-OTCQX] for $470 million cash, net of taxes and commissions.

This comes amid reports that Barrick Mining Corp. [ABX-TSX, B-NYSE] is in advanced talks to sell its Hemlo gold mine in Ontario to Discovery Silver. Barrick has not commented on the report that the sale is in its final stages, published reports say.

The share sale follows Newmont’s February 2024, announcement that it intended to divest certain “high-quality non-core assets.” The divestiture program is expected to generate US$3.0 billion this year. It said the monetization of the Greatland and Discovery shares further streamlines Newmont’s equity portfolio, while generating cash for the business.

Greatland is an Australian gold and copper producer, operating the Telfer gold mine, one of Australia’s largest gold-copper mining complexes.

Back in January, 2025, Discovery Silver made headlines when it announced details of a definitive deal with Newmont to acquire the U.S. company’s 100% interest in its Porcupine operations based in and near Timmins, Ont., for US$425 million.

The amount to be paid consisted of US$200 million in cash and US$75 million payable in common shares of Discovery. Both amounts were payable on closing of the transaction, which also included a deferred payment that will be paid in four annual cash payments of US$37.5 million starting on December 31, 2027.

Newmont said that working with Discovery, it agreed to divest 100% of its shares in May, 2025, and July, 2025. The Discovery shares sold were received as part of the consideration of the divestment of the Porcupine mine to Discovery . “The sales reflect the approximately 200% return relative to the value announced at the time of the Porcupine transaction,” Newmont said in a press release. To facilitate the sales, Discovery agreed to waive certain provisions of the investor rights agreement entered into between the the two companies in relation to the transaction. Following the settlement of the July sales, Newmont will no longer be a shareholder of Discovery.

On Wednesday, Discovery Silver shares eased 1.1% or $0.035 to $3.13. The shares trade in a 52-week range of $3.79 and 52 cents.

Discovery Silver has set out to become the mining sector’s next major silver producer by developing its 100%-owned Cordero project in Chihuahua State, Mexico.

To fund the Newmont transaction and provide liquidity in support of operating and growing the Porcupine Complex, Discovery entered into a binding commitment for approximately US$555 million of financing, including US$400 million related to royalty and debt agreements with Franco Nevada Mining Corp. [FNV-TSX, NYSE] and approximately US$155 million from a bought deal offering of subscription receipts.

The deal established Discovery as a new Canadian gold producer with multiple operations in one of the world’s most prolific gold camps, accounting for approximately 70 million ounces of total historic production, with a large base of mineral resources remaining and substantial exploration upside.