Canada-based Fuerte Metals has reached an agreement with Newmont Corporation to acquire the latter’s Coffee Gold Project in Yukon, Canada, for up to $150m (C$206.47m).
Under the terms of the deal, Newmont will receive an initial cash payment of $10m, alongside $40m in equity in the form of Fuerte shares, upon closing.
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Additionally, the US gold miner will receive a 3% net smelter return royalty on the Coffee Gold Project, which Fuerte can repurchase for up to $100m.
The transaction has been unanimously approved by Fuerte’s board.
It is expected to close by 19 October 2025, pending the fulfilment of specific conditions.
Last year, in February, Newmont announced plans to divest non-core assets including six operations and two projects across Australia, Ghana and North America.
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By GlobalDataUpon closing the gold project transaction, the US miner will have divested all its assets announced 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.”
The Coffee Gold Project is located around 130km south of Dawson in Canada’s Yukon Territory, within the Yukon-Tanana Terrane and the broader Tintina Gold Province.
The region is known for its multi-million-ounce (moz) deposits and producing mines, including Kinross’ Fort Knox Mine and Snowline’s Valley deposit.
The Coffee Gold Project is said to host 3moz of open-pit heap-leach measured and indicated resource, along with an inferred resource of 800,000oz.
BMO Capital Markets served as the financial advisor, while Goodmans acted as the legal advisor to Newmont on the transaction.
Trinity Advisors Corporation served as financial advisor and Borden Ladner Gervais acted as legal counsel to Fuerte Metals.
Fuerte Metals CEO Tim Warman said: “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.”
