Fuerte Metals to acquire Newmont’s Coffee Gold Project for up to $150m

Core Viewpoint - Fuerte Metals has agreed to acquire Newmont Corporation's Coffee Gold Project in Yukon, Canada, for up to $150 million, which includes an initial cash payment and equity shares, along with a royalty agreement [1][2][3]. Transaction Details - The total acquisition cost is up to $150 million (C$206.47 million), consisting of an initial cash payment of $10 million and $40 million in equity [1]. - Newmont will receive a 3% net smelter return royalty on the Coffee Gold Project, which Fuerte can repurchase for up to $100 million [1]. - The transaction is expected to close by October 19, 2025, pending specific conditions [2]. Strategic Rationale - Newmont's CEO stated that the sale is part of a strategy to streamline its portfolio and focus on core operations [3]. - The divestment aligns with Newmont's previous announcements regarding the sale of non-core assets across various regions [2]. Project Overview - The Coffee Gold Project is located approximately 130 km south of Dawson in Yukon Territory and is part of a region known for significant gold deposits [4][5]. - The project is reported to host 3 million ounces (moz) of open-pit heap-leach measured and indicated resources, along with an inferred resource of 800,000 ounces [5]. Advisory Roles - BMO Capital Markets acted as the financial advisor for Newmont, while Goodmans served as legal advisor [5]. - Trinity Advisors Corporation was the financial advisor for Fuerte Metals, with Borden Ladner Gervais acting as legal counsel [6]. Community Engagement - Fuerte Metals emphasizes the importance of protecting the water and lands around the Coffee Creek area and pledges to build relationships with local First Nations [7].