Goldminer Discovery Silver Corp. said Monday that it has acquired Glencore Canada’s Kidd operations in the Timmins, Ont., area.
In a news release, the company said the acquisition “supports Discovery’s vision to more than double gold production in Timmins to over half a million ounces per year.”
In turn, Glencore will receive US$10 million in Discovery shares. The agreement also includes a deferred payment of up to US$75 million either in Discovery common shares or in cash once Discovery receives “all material permits and regulatory approvals required to deposit gold tailings” at the Kidd tailings management area (TMA).
The agreement includes the acquisition of the Kidd Creek Mine, Kidd Met Site, Kidd TMA, “and all associated property, claims and assets, as well as all of the issued and outstanding shares of Kidd Creek Timber Ltd.”
Tony Makuch, Discovery’s president and CEO, said the deal allows the company to significantly increase its processing and tailings capacity.
It also “supports a growth trajectory that could more than double gold production in Timmins to over half a million ounces per year,” Makuch said in the news release.
“The acquisition also provides important synergies that will augment our current operations and delivers a large land package with tremendous exploration upside potential for copper, zinc and silver, the metals produced at Kidd Creek, as well as for other critical minerals and gold,” he said.
Valuable infrastructure
“Very importantly, the Kidd operations include valuable, well-maintained infrastructure, and come with a large, highly-skilled labour force with expertise and experience in all key disciplines of our business, which we plan to leverage to support our future success in the Timmins camp.”
Makuch said the agreement includes key infrastructure such as four processing circuits, significant tailings capacity, 90 MW of power, a large metallurgical lab, a freshwater supply and rail access.
“This infrastructure will assist us as we advance plans to grow our gold production substantially,” he said.
“Among the many anticipated synergies resulting from the acquisition, haulage costs will be reduced significantly given that Hoyle Pond and Pamour are approximately one kilometre and three kilometres from the Kidd Met Site, respectively.”
“We plan to deploy drills at Kidd Creek Mine and surrounding properties, where there is substantial exploration upside, and limited past drilling, with a goal of identifying new mineral resources that could support future mining operations at the site.”
— Tony Makuch, Discovery president and CEO
Opened in 1966, production from Kidd Creek Mine in 2024 totaled 40 million pounds of copper, 82 million pounds of zinc and 1.5 million ounces of silver.
“We plan to deploy drills at Kidd Creek Mine and surrounding properties, where there is substantial exploration upside, and limited past drilling, with a goal of identifying new mineral resources that could support future mining operations at the site,” Makuch said.
Stephen Lecce, Ontario’s Minister of Energy and Mines, praised the agreement.
“After reducing permit timelines, Ontario is proud to support Discovery’s significant investment in the region that could result in doubling production in Timmins while creating jobs for Canadians,” Lecce said in the release.
“This is a massive achievement as the Kidd Met Site would have been closed this year and now, with renewed confidence, we are taking this fully permitted mill and community to the next level. We thank Discovery for their leadership in investing in protecting Ontario’s highly skilled workforce and working with us to advance responsible resource development across the north.”
Deal will close this year
Discovery said it anticipates the deal will close during the first half of 2026.
Glencore’s Kidd Operations are located in Timmins and include the Kidd Creek Mine and the Kidd Met Site. Discovery plans to continue with the current operating plan for both the Kidd Met Site and Kidd Creek Mine.
At the Kidd Creek Mine, Discovery said it plans to undertake an extensive drilling program, given the significant exploration potential that exists at and near Kidd Creek Mine, “with a goal of identifying new mineral resources that could support future operations at the mine.”
The Kidd Met Site is an integrated mineral processing facility, with an accompanying 1,200-hectare tailings facility.
The Kidd Creek Mine is the world’s deepest base metal mine, with mining operations currently at the 9,800-foot level and the shaft extending to the 9,889-foot level.
All mining at the Kidd Creek Mine is performed using the sublevel longhole mining method. Ore is hoisted up the shaft and transported by rail 27 kilometres to the Kidd Met Site.
