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Discovery Silver has closed its acquisition of Glencore Canada's Kidd Operations in Timmins, picking up the Kidd Creek copper-zinc-silver mine, the Kidd Metallurgical Site and the Kidd Creek Timber exploration land package, and immediately rolled out a leadership refresh in conjunction with the deal.
The transaction more than doubles Discovery's footprint in the Timmins camp roughly a year after the company acquired Newmont's Porcupine Complex — Hoyle Pond, Dome and Pamour — and it gives Discovery the processing capacity, surface rights and land position needed to advance an ambition to more than double annual gold production in the camp to more than 500,000 ounces.
"The acquisition of the Kidd Operations is a major development for Discovery as we work to advance our extensive growth plans, including more than doubling gold production in the Timmins Camp to over half a million ounces per year," said president and CEO Tony Makuch. "With the completion of the transaction, we have added extremely valuable processing and other infrastructure, as well as a large land package, and we have also gained highly attractive cost synergies, exposure to critical minerals and substantial exploration upside. We have also retained an experienced, highly skilled workforce."
The deal
Discovery paid Glencore $10 million up front, through the issuance of 1,679,171 Discovery common shares. Additional consideration includes Discovery's assumption of the environmental and rehabilitation obligations tied to the Kidd Met Site and the Kidd Creek Mine, offtake arrangements on Kidd Creek Mine concentrates, and a 1.0% net smelter return royalty in Glencore's favour on any future mineral production from the Kidd Creek Timber land package located outside the existing operations. Discovery will also reimburse Glencore for certain costs incurred at the Kidd Tailings Management Area (Kidd TMA), up to a maximum of $75 million — payable in cash or Discovery shares at the company's election — once the material permits and regulatory approvals required to deposit gold tailings at the Kidd TMA are received.
Closing conditions, including the transfer of associated property, claims and assets and the issued and outstanding shares of Kidd Creek Timber Ltd. from Glencore to Discovery, have all been met, and all required regulatory approvals — including conditional Toronto Stock Exchange approval for the share issuance and Competition Act clearance — have been received.
### What Discovery is buying
Glencore's Kidd Operations have been running since 1966. Over the past 60 years they have produced more than 772 million pounds of copper, 2.1 billion pounds of zinc and 400 million ounces of silver. In 2025, Glencore announced plans to close both the Kidd Met Site and the Kidd Creek Mine at the end of 2026.
Discovery now plans to assess the potential for a longer life at Kidd Creek Mine beyond the end of this year through technical studies and a drilling program. In the meantime, the company expects to continue running the operation through year-end 2026, producing an estimated 10,000 to 15,000 tonnes of zinc, 5,000 to 7,000 tonnes of copper and roughly 0.4 million ounces of silver over the remainder of the year. Discovery said that production is expected to generate strong cash flow and contribute favourably to its year-end cash position.
### How the Met Site fits the gold strategy
The strategic logic for Discovery is centred on the Kidd Met Site, a large processing facility next door to its Porcupine assets. Discovery is contemplating the construction of a new conventional gold circuit at the Met Site, together with other modifications and investments, that would let it process gold mineralization from Hoyle Pond, Pamour, Borden and the TVZ project at the Kidd Met Site, while the Met Site continues to handle base-metal feed from Kidd Creek Mine.
If that plan plays out, the Dome Mill — which currently handles Borden material — would be freed up to be dedicated to the Dome Mine following an anticipated resumption of mining there. Discovery said processing Borden material at the Kidd Met Site is expected to improve recoveries and costs at Dome Mill and provide that mill with about 2,000 tonnes per day of additional throughput.
Discovery also flagged the value of the Kidd surface rights, which it expects to use to optimize new infrastructure for Hoyle Pond and the TVZ project. The company is currently evaluating new ventilation raises, and possibly a new shaft, at Hoyle Pond, sited on Kidd Met Site land. Anticipated synergies include lower haulage costs because the Met Site is contiguous to both Hoyle Pond and Pamour, improved waste-rock deposition options for Pamour, and the potential to deposit gold tailings at the Kidd TMA.
### Leadership refresh
Concurrent with the Kidd closing, Discovery has appointed three new senior executives, two of them coming directly from Glencore's Kidd operations.
Dawid Myburgh joins as senior vice president, Timmins Operations. Myburgh has been general manager of Glencore's Kidd Operations since 2023, overseeing both the Kidd Creek Mine and the Kidd Met Site. He brings more than 25 years in the industry spanning exploration, feasibility, construction, operations and optimization, and holds an honours B.Sc. in geology from the University of Pretoria in South Africa.
Harold Bird becomes vice president, mineral processing. Bird spent nearly two decades in mill operations at the Kidd Met Site, most recently as manager, concentrator site operations, with Glencore. He holds diplomas in mechanical engineering technologies from Lakehead University and civil engineering technologist studies from Cambrian College.
Gertjan Bekkers, P.Eng., becomes vice president, technical services. Bekkers most recently served as vice president, mine technical services at Torex Gold Resources, where he oversaw corporate mine technical work for Mexico's largest gold operation. Before Torex he was manager, technical services at Newmont's Porcupine Operations from 2015 to 2021, and he has held multiple technical roles with Glencore, including at the Kidd mine. He is a professional engineer with an M.Sc. in mining and petroleum engineering from Delft University of Technology.
Discovery also promoted two existing executives: Duncan King to senior vice president, Canadian Operations, and Milferd Burnett to vice president, supply chain.
Chief operating officer Pierre Rocque is retiring effective June 5, 2026 and will remain with the company as a consultant. Makuch credited Rocque with leading the integration and transition following the Porcupine acquisition. Two other senior departures were also announced: executive vice president, business development and growth, Forbes Gemmell, who Makuch said played a key role in completing the Porcupine acquisition agreements and in advancing the Cordero silver project in Mexico to feasibility; and vice president, projects, Dimitri Demianyuk, who also contributed to Cordero. Both are leaving to pursue other opportunities.
"We are delighted to welcome Dawid, Harold and Gertjan to the executive team," Makuch said. "They are all highly accomplished professionals with a proven track record of success in the mining industry. Dawid and Harold join Discovery from Glencore, where they held senior leadership roles at the Kidd Operations and where they have gained extensive experience working in the Timmins camp. Gertjan brings to the company significant technical services expertise in support of further progress at both our Porcupine Complex and the Cordero Project in Mexico."
### About Discovery Silver
Discovery is a growing precious metals company with exposure to both gold and silver. Its silver platform is the 100%-owned Cordero project in Chihuahua State, Mexico, one of the world's largest undeveloped silver deposits. In April 2025, Discovery's acquisition of Newmont's Porcupine Complex transformed it into a Canadian gold producer with multiple operations in and near Timmins. The Kidd Operations acquisition further enlarges that Ontario footprint and provides the infrastructure to support a substantial production-growth program.