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Newmont Agrees to Divest Coffee Project in Yukon for $150M
NewmontNewmont(US:NEM) ZACKSยท2025-09-17 16:26

Core Insights - Newmont Corporation (NEM) has agreed to sell its Coffee Project in Yukon, Canada, to Fuerte Metals Corporation for a total consideration of up to $150 million, expected to close in Q4 2025 [1][7] Transaction Details - The $150 million proceeds consist of $10 million in cash, 34 million shares valued at $40 million, and a 3% net smelter return (NSR) royalty on the Coffee Project, with Fuerte having the option to repurchase the NSR for up to $100 million [2][3] - Newmont will retain approximately 27% of Fuerte's issued shares, maintaining exposure to the project and will evaluate its investment periodically [4][7] Strategic Rationale - The sale aligns with Newmont's strategy to streamline its portfolio and focus on core operations, seeking buyers with shared values and environmental consciousness [3] - The transaction is part of a broader divestment plan, with Newmont aiming to divest six operations and two projects across Australia, Ghana, and North America [3] Market Performance - Over the past year, NEM's shares have increased by 51.9%, while the industry has seen a surge of 74.8% [4]