Fuerte Announces Transformational Acquisition of the Coffee Project from Newmont Corporation

Core Insights - Fuerte Metals Corporation has announced a transformational acquisition of the Coffee Gold Project from Newmont Corporation, which includes a robust mineral resource estimate and significant upside potential [1][2][5] Transaction Overview - The acquisition involves an upfront payment of US$10 million in cash and US$40 million in common and preferred shares, totaling up to US$150 million [2][24] - Fuerte will grant Newmont a 3% net smelter return (NSR) on the Coffee project, which can be repurchased for US$100 million within one year after commercial production [2][24] Project Highlights - The Coffee Gold Project hosts a measured and indicated resource of 3.0 million ounces of gold within 80 million tonnes at a grade of 1.15 g/t, with an inferred resource of 0.8 million ounces within 21 million tonnes at 1.17 g/t [5][9] - The project is located in Yukon, Canada, an emerging mining jurisdiction with strong geological potential and government support [5][13] - Engineering and permitting processes are well advanced, with a positive environmental assessment received in 2022 [5][21] Resource Expansion Potential - The project has significant optionality for resource expansion, with a strategic land package of 70,256 hectares and multiple untested oxide targets [5][11] - Sensitivity analysis indicates a robust resource at higher cut-off grades, with 2.8 million ounces at 1.44 g/t gold at a 0.40 g/t cut-off [11][12] Community and Environmental Engagement - Fuerte is committed to building relationships with local First Nations and has signed agreements to ensure community involvement in the project [6][20] - The project has undergone extensive environmental assessments and community consultations since 2010 [19][21] Financing and Shareholder Base - A concurrent equity financing of up to C$50 million is being arranged, backed by key shareholders including Newmont and Agnico Eagle [2][29] - The financing will support the cash component of the acquisition and further exploration and development activities at the Coffee project [30][40] Timeline and Regulatory Approvals - The transaction is expected to close around October 19, 2025, subject to regulatory approvals and customary closing conditions [37][36] - Applications for necessary permits, including a Water Use Licence and Quartz Mining Licence, are currently under review [22][21]