By Jamie Hyland – MiningIR
Newmont Corporation announced Monday it has reached an agreement to sell its Coffee Project in Yukon, Canada, to Fuerte Metals Corporation for up to $150 million in total consideration. The deal is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions.
Under the terms of the agreement, Newmont will receive $10 million in cash and $40 million in equity in the form of Fuerte shares at closing. The transaction also grants Newmont a 3.0% net smelter return royalty on the Coffee Project. Fuerte retains an option to repurchase the royalty for up to $100 million.
Fuerte Metals is a well-funded resource company, adding value through the acquisition, exploration, and development of copper and precious metals projects in Mexico and Chile. Fuerte is supported by key shareholders, Pierre Lassonde, who served as Newmont’s President from 2002 to 2007, and Trinity Capital Partners Corporation.
As part of the equity component, Newmont, through its subsidiary Goldcorp Canada Ltd., will receive 34 million Fuerte shares, representing approximately 27 percent of the company’s issued and outstanding capital.
“The sale of the Coffee Project reflects our ongoing efforts to streamline the portfolio and sharpen our focus on core operations,” said Tom Palmer, Newmont’s Chief Executive Officer. “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.”
The Coffee Project is considered a non-core asset for Newmont, and the sale marks further progress in the company’s strategy of portfolio optimization. With this divestment, Newmont said it will have completed the sale of all six operations and two projects previously classified as “held for sale” in its financial reports.
The transaction strengthens Fuerte’s presence in the Yukon while allowing Newmont to sharpen its focus on higher-value operations. Newmont added that it intends to monitor its investment in Fuerte going forward and could adjust its ownership based on market conditions and other strategic considerations
