Newmont has reached an agreement to sell its Coffee gold project in Canada’s Yukon Territory to Fuerte Metals for a deal valued at as much as $150 million. The deal is slated to close in the fourth quarter of 2025 once customary conditions are met. At the closing, Newmont will receive $10 million in cash and $40 million worth of Fuerte Metals shares, along with a 3 percent net smelter return royalty on future production from the Coffee mine.
The royalty carries an option for Fuerte Metals to repurchase it for up to $100 million, offering Newmont the chance to monetize its remaining stake in the project if production ramps up. Fuerte Metals, backed by resource investors like Pierre Lassonde and Trinity Capital Partners, focuses on acquiring and developing copper and precious‐metal assets in Mexico and Chile. The addition of Coffee expands their portfolio into Canada’s Yukon mining district.
This sale completes Newmont’s previously announced plan to divest non-core assets. Earlier in 2024, the company identified six operating mines and two development projects across Australia, Ghana and North America for sale. With the Coffee deal finalized, all assets once classified as held for sale under Newmont’s restructuring plan will have been transferred to new owners.
As part of the arrangement, Newmont will receive roughly 34 million shares of Fuerte Metals, representing about 27 percent of that company’s outstanding stock immediately after closing. Goldcorp Canada Ltd., a Newmont subsidiary, will initially hold these shares. Over time, Newmont may choose to buy or sell Fuerte shares on the open market or adjust its position through private transactions, depending on market conditions and corporate strategy.
Advisors: In connection with the Coffee transaction, BMO Capital Markets acted as financial advisor and Goodmans LLP acted as legal advisor.
KEY QUOTE:
“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 honor agreements and relationships with the First Nations partners and other stakeholders that are connected to the project.”
Tom Palmer, Newmont’s Chief Executive Officer
