Discovery Enters into Asset Purchase Agreement to Acquire Certain Timmins Mineral Properties from McEwen Inc.

Discovery Silver Corp. (DSV) entered an asset purchase agreement to acquire the Fuller project and a 60% interest in the Paymaster Joint Venture from McEwen Inc. The total consideration is $55 million USD, structured as $5 million in cash and $50 million payable in Discovery common shares. Concurrently, Discovery amended its royalty agreement with Franco-Nevada to extend the existing royalty interest to the newly acquired assets in exchange for an $8 million payment.

The strategic rationale centers on expanding the land position contiguous with the Dome Mine, providing an ideal location for potential new processing and tailings facilities to support large-scale production. Dome currently holds an 11 million ounce inferred resource. Anticipated closing is October 2026, subject to customary conditions including TSX approval for the share issuance and regulatory approvals.

Discovery Silver Corp. (DSV) announced a $55 million acquisition, a figure that represents approximately 0.6% of the company’s ~$9.3 billion market capitalization. The transaction secures contiguous land for Dome Mine infrastructure and tailings, aligning with the company’s stated vision to double production.

The deal includes an $8 million Franco-Nevada royalty extension, which constitutes a minor margin dilution expected given the asset expansion. Additionally, a $50 million share issuance introduces dilution but serves as a standard mechanism for small-scale land acquisitions. The market has already priced in the growth narrative and Cordero permitting progress, with this news reinforcing the long-term thesis without altering near-term NAV or cash flow.

Discovery Silver Corp. (DSV) is a precious metals producer focused on the Porcupine Complex in Timmins, Ontario, and the Cordero silver project in Mexico. The Porcupine assets include Pamour, Hoyle Pond, Borden, Dome, TVZ, and Owl Creek. The company acquired the Kidd Operations (Kidd Met Site, Kidd Creek Mine, and Tailings Management Area) from Glencore in June 2026.

The Kidd Met Site provides critical processing infrastructure with four independent circuits, 90 MW of power, and 1,200 hectares of tailings capacity. The company’s strategy centers on leveraging Kidd Met processing capacity to more than double gold production in Timmins to over 500,000 ounces annually over the next 3–5 years.