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.

Newmont has announced the sale of its Porcupine operation in Ontario, Canada, to Discovery Silver for up to $425m. This transaction is part of Newmont's ongoing divestiture programme aimed at non-core assets. It contributes to Newmont's aim of generating up to $4.3bn from divestitures and investments.

In a Jan. 27 news release, Discovery said its entry into the Timmins camp catapults them into the position of being a leading Canadian gold producer. Discovery’s only other asset is the Cordero silver project in Mexico, claimed to be the world’s largest undeveloped silver reserve.

Newmont (NYSE:NEM) said Monday it agreed to sell its Porcupine operation in Ontario to Discovery Silver for as much as $425M, including $200M in cash, $75M in Discovery shares and $150M in deferred cash consideration.