Canada-based Fuerte Metals has entered into a significant agreement to acquire Newmont Corporation’s Coffee Gold Project located in Yukon, Canada. The transaction, valued at up to $150 million (C$206.47 million), includes an initial cash payment of $10 million and $40 million in equity in the form of Fuerte shares to be paid upon closing.
Moreover, Newmont will receive a 3% net smelter return royal on the Coffee Gold Project, which is open to repurchase for up to $100 million. The deal has received unanimous approval from Fuerte’s board and is anticipated to close by October 19, 2025, contingent on fulfilling certain conditions.
This sale is part of Newmont’s broader strategy announced last year to divest non-core assets, covering six operations and two projects across Australia, Ghana, and North America. Closing this transaction will complete Newmont’s asset divestiture as previously announced.
Newmont’s CEO, Tom Palmer, emphasized the importance of this sale in streamlining the company’s portfolio and honing its focus on core operations. He expressed confidence that Fuerte Metals shares the company’s values and is committed to developing the Coffee project responsibly in conjunction with First Nations partners and other stakeholders involved.
The Coffee Gold Project is situated roughly 130 kilometers south of Dawson in the Yukon Territory and lies within the rich Yukon-Tanana Terrane and the Tintina Gold Province. This region is well-known for its extensive gold deposits, highlighted by operating mines such as Kinross’ Fort Knox Mine and Snowline’s Valley deposit. The project is reported to contain approximately 3 million ounces of open-pit heap-leach measured and indicated resources, along with an inferred resource of 800,000 ounces.
BMO Capital Markets acted as a financial advisor to Newmont, while Goodmans served as legal counsel for the transaction. Fuerte Metals received financial advisory services from Trinity Advisors Corporation and legal counsel from Borden Ladner Gervais.
Fuerte Metals’ CEO, Tim Warman, remarked that the project is on a clear path to obtaining necessary permits and is backed by strong financial and technical partners poised to advance its development into a production operation. He also acknowledged the critical importance of protecting the water and lands surrounding the Coffee Creek and mine project areas, asserting a commitment to fostering cooperative and respectful relationships with the Tr’ondëk Hwëch’in, White River First Nation, Selkirk First Nation, and the First Nation of Na-Cho Nyäk Dun, whose traditional territories will be impacted by exploration and mining activities.
