Jan 27 (Reuters) - Gold miner Discovery Silver ( DSVSF )

said on Monday it would acquire its peer Newmont's ( NEM ) stake

in Porcupine Operations in Ontario, Canada, for $425 million.

Newmont ( NEM ), after buying Australia-based Newcrest for $17.14

billion, announced in February 2024 it would divest non-core

assets and trim its workforce to cut debt.

Discovery said it will acquire the operations for $200

million in cash, $75 million in common shares of Discovery and

$150 million, to be paid in four equal annual cash payments

starting Dec. 31, 2027.

To fund the transaction, Discovery entered into a financing

package of $555 million, including $400 million related to

royalty and debt agreements with mining company Franco-Nevada ( FNV )

.

The Porcupine Complex, a group of mining operations, has an

annual gold production of 260,000 ounces as of December 2023.

(Reporting by Tanay Dhumal in Bengaluru: Editing by Anil

D'Silva and Vijay Kishore)