Over $3 billion in M&A – Discovery Group business hits come from uncovering talent

Uncovering and building support around talent is the key to the Discovery Group’s successes, said Jim Paterson, co-founder and principal of Discovery Group.

Kitco Mining correspondent Paul Harris spoke to Patterson at Mines and Money London, held from November 29 to December 1.

Discovery Group is an alliance of public companies focused on the advancement of mineral exploration and mining projects. Founded in 2005 by John Robins and Paterson, Discovery Group has generated over $500 million in direct and indirect expenditures resulting in over $3 billion in mergers and acquisitions.

Notable successes include the following:

• In 2016 Goldcorp acquired Discovery Group’s Kaminak Gold for approximately C$520 million.

• In 2021 Kinross paid C$1.8 billion to acquire Discovery Group’s Great Bear Resources.

• In 2020 Royal Gold (NASDAQ: RGLD) acquired Discovery Group’s Great Bear Royalties for C$200 million (US$154 million) in an all-cash deal.

Discovery Group is still growing its pipeline. Ongoing projects range from grassroots exploration to mine development with projects in Canada and Latin America. In the last 24 months the company has raised in excess of $200 million in equity. It continues to attract venture capital despite challenging markets.

Paterson said the company identifies stars and supports them with Discovery Group resources. Paterson related the story of meeting Bob Singh and Chris Taylor, who eventually went on to found Great Bear Resources within Discovery Group.

“After meeting [with] them we just absolutely fell in love these guys. They were top-notch and we wanted them to join our group,” said Paterson. “We were lucky enough to do so, and we wrapped some of the [Discovery Group] framework around them.

“We’re a platform. We’re an incubator, and this brand and platform allows us to attract great people. Those great people attract great projects,” said Paterson.

Coverage of Mines and Money London sponsored by Discovery Group.

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0:30 – What is Discovery Group?
1:30 – Name some business highlights.
2:45 – Identifying talent in the resource space and cultivating it.
3:33 – Companies under Discovery Group umbrella
4:10 – Fireweed Metals deal with Lundin Mining
5:08 – What is the focus of Discovery Group within the resource sector?
6:13 – Why is it important for a company to get backing from a group like Discovery Group?
6:55 – Looking at the whole sector, is it going to be hard for juniors to get financing?
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