Wedoany.com Report-Sept. 17, Fuerte Metals, a Canada-based mining company, has reached an agreement with Newmont Corporation to acquire the Coffee Gold Project in Yukon, Canada, for up to $150 million (C$206.47 million). The deal includes both cash and equity components, as well as future royalty rights.

Upon closing the gold project transaction, US miner Newmont will have divested all its assets announced for sale.

According to the terms, Newmont will receive an initial $10 million in cash and $40 million in equity through Fuerte shares at closing. In addition, Newmont will retain a 3% net smelter return royalty on the project, which Fuerte can repurchase for up to $100 million. The transaction, unanimously approved by Fuerte’s board, is scheduled to close by 19 October 2025, subject to specific conditions.

The Coffee Gold Project lies about 130 kilometers south of Dawson City in Yukon’s Tintina Gold Province, an area well known for multi-million-ounce deposits and producing mines, such as Kinross’ Fort Knox Mine and Snowline’s Valley deposit. The project hosts 3 million ounces of open-pit heap-leach measured and indicated resources, along with an inferred resource of 800,000 ounces.

The sale follows Newmont’s February 2024 announcement of plans to divest non-core assets, including six operations and two projects across Australia, Ghana, and North America. Upon completion of this transaction, Newmont will have divested all assets targeted for sale.

Newmont CEO Tom Palmer said: “The sale of the Coffee Project reflects our ongoing efforts to streamline the portfolio and sharpen our focus on core operations. Throughout the process, we were committed to identifying a buyer who shares our values and can develop the Coffee project in a socially and environmentally conscious manner. We are pleased to be selling this asset to Fuerte and have full confidence in their ability to honour agreements and relationships with the First Nations partners and other stakeholders that are connected to the project.”

On the buyer’s side, Fuerte Metals CEO Tim Warman emphasized the long-term development potential: “The project is on a clear path to complete permitting and has strong financial and technical partners who have the vision to advance the project to production and build the next great Canadian gold producer. We respectfully acknowledge that protection of the water and lands around the Coffee Creek and mine project areas is of high importance to First Nations. Through cooperation, transparency and respect, we pledge to continue to build on relationships with Tr’ondëk Hwëch’in, White River First Nation, Selkirk First Nation and the First Nation of Na-Cho Nyäk Dun, on whose Traditional Territories exploration and mining activities will be carried out.”

BMO Capital Markets acted as financial advisor and Goodmans as legal advisor to Newmont, while Trinity Advisors Corporation and Borden Ladner Gervais provided financial and legal advice to Fuerte Metals.