Discovery Mining Ltd. (TSX: DSV, OTCQX: DSVSF) announced on October 9, 2026 that it has entered into an asset purchase agreement to acquire certain mineral properties adjacent to its Dome Mine from subsidiaries of McEwen Inc. for total consideration of US$55 million. The Purchased Assets include the Fuller project and McEwen's 60% interest in the Paymaster Joint Venture. Simultaneously, Discovery announced an amended royalty agreement with Franco-Nevada Canada Holdings Inc. that will deliver US$8 million to Discovery on closing. Investors may be watching how these land additions support Discovery's stated goal of significantly expanding gold production in the Timmins Camp.

Key Points

  • Discovery Mining Ltd. (TSX: DSV, OTCQX: DSVSF) announced the acquisition of mineral properties from McEwen Inc. subsidiaries
  • Total consideration is US$55 million — US$50 million payable in Discovery common shares and US$5 million in cash
  • Franco-Nevada's amended royalty agreement provides Discovery with US$8 million on closing, extending Franco-Nevada's royalty to include the Purchased Assets
  • Closing is anticipated in October 2026, subject to TSX approval, regulatory conditions, and extinguishment of the existing NPI royalty on the Fuller project

Fuller Project and Paymaster Joint Venture Expand Dome Mine Land Position

The Purchased Assets are described in the announcement as contiguous with Discovery's Dome Mine and include the Fuller project and the Seller's 60% interest in the Paymaster Joint Venture. The release states that the acquired land provides what Discovery considers an ideal location for potential future processing and tailings infrastructure to support large-scale production. Discovery's President and CEO Tony Makuch noted in the announcement that the Dome Mine holds an 11 million ounce inferred resource, and the company is working on plans to resume operations over the next five years using the existing Dome Mill.

US$55 Million Deal Structured Primarily in Discovery Shares

Under the terms of the agreement, McEwen Inc. subsidiaries will receive US$50 million payable in Discovery common shares and US$5 million in cash at closing, for aggregate consideration of US$55 million. All amounts are denominated in US dollars, as stated in the release. The share-based structure preserves Discovery's cash while aligning McEwen's consideration with the company's equity. Closing remains subject to conditions including TSX approval of the share issuance, extinguishment of the existing NPI royalty on the Fuller project, consent from Ontario's Ministry of Mines, and other customary closing conditions.

Franco-Nevada Royalty Amendment Delivers US$8 Million to Discovery at Closing

Concurrent with the acquisition announcement, Discovery disclosed it has entered into a royalty purchase agreement with Franco-Nevada Canada Holdings Inc., a subsidiary of Franco-Nevada Corporation. The agreement amends terms of a royalty arrangement originally dated April 15, 2025, related to the Porcupine Operations, extending Franco-Nevada's existing royalty interest to cover the Purchased Assets. In exchange, Discovery will receive US$8 million from Franco-Nevada on closing of the Transaction. The release describes this arrangement as reflective of Franco-Nevada's continued support for Discovery's expansion strategy in the Timmins Camp.