Fuerte Completes Acquisition of Coffee Project

Core Points - Fuerte Metals Corporation has successfully closed the acquisition of Goldcorp Kaminak Ltd., which owns the Coffee Gold Project in Yukon, Canada, from Newmont Corporation for a total consideration of approximately US$115 million [1][2] - The acquisition involved a cash payment of US$10 million, issuance of US$40 million in common and preferred shares, and assumption of a US$65 million intercompany note payable to Kaminak [1][2] - Following the transaction, Newmont will hold a 26% indirect ownership stake in Fuerte on a partially diluted basis [1] Financial Details - The company raised approximately US$57.5 million through an offering of 34,848,485 subscription receipts at a price of $1.65 each to fund the cash component of the acquisition and advance exploration activities [2][3] - After the transaction, Fuerte has 120,915,268 common shares and 10,842,989 preferred shares outstanding, with a current cash balance of approximately C$43 million [3] Strategic Plans - Fuerte plans to provide a market update later in the quarter, including a Preliminary Economic Assessment (PEA) in the first half of 2026 and exploration plans for Q2/Q3 2026 [2] - The company aims to strengthen its management team and board to facilitate the transition to a gold producer [3] Investor Rights and Agreements - An investor rights agreement has been established with Newmont, granting it rights to participate in certain securities offerings and to nominate one director to Fuerte's board [4] - Fuerte issued 2,000,000 units to Trinity Advisors Corporation as compensation for financial advisory services related to the transaction, with warrants exercisable at $2.50 per share for five years [5] Company Overview - Fuerte Metals is focused on advancing high-potential base and precious metals projects across the Americas, with the Coffee Project being its flagship asset [9] - The company also holds a portfolio of copper and gold assets in Chile and Mexico, indicating potential for further growth and exploration [9]