08:08 AM EST, 01/27/2025 (MT Newswires) -- Newmont's ( NEM ) shares were at at last look down 0.26% in US premarket trade, having been down 2.2% a short time ago, as it agreed to sell its Porcupine operation in Ontario for up to US$425 million to Discovery Silver ( DSVSF ) .

Consideration comprises US$200 million cash, US$75 million in Discovery shares and deferred cash consideration of US$150 million.

"Today's announcement represents a significant milestone for Newmont ( NEM ) as we have agreed to sell the final non-core operation from our divestiture program," said Tom Palmer, Newmont's ( NEM ) president and CEO. "The sale is part of Newmont's ( NEM ) ongoing program to divest non-core assets as we make a strategic shift to focus on our Tier 1 assets."

"Including the Porcupine divestiture, we expect to generate up to US$4.3 billion in total proceeds from the announced sales of our high-quality non-core assets and investments, enabling us to further reduce debt and return capital to shareholders," Palmer added.

Separately, Franco-Nevada ( FNV ) said it entered a financing transaction to support Discovery in the deal. Under the terms, Franco-Nevada ( FNV ) will acquire a 4.25% net smelter return royalty on the property for US$300 million.

Franco-Nevada ( FNV ) will also provide a US$100 million senior secured term loan and invest US$49 million in Discovery's C$225 million equity raise.

According to Franco-Nevada ( FNV ), the financing package provides Discovery with proceeds to acquire the Porcupine complex and fund the planned capital program for the operation.

"We are delighted to support Discovery in this transformative transaction to acquire the Porcupine complex in Ontario and add another cash flowing gold asset to Franco-Nevada's ( FNV ) portfolio," said Paul Brink, Franco-Nevada's ( FNV ) president and CEO.

Franco-Nevada ( FNV ) said it plans to finance the transactions from cash on hand. Closing of the transactions is expected to occur in the first half.