Newmont sells Coffee Project to Fuerte Metals for up to $225m
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The news: Gold miner Newmont Corporation has agreed to sell its Coffee Project in Canada to Fuerte Metals Corporation for up to USD150 million ($225 million).
The numbers: The transaction is expected to close in the fourth quarter of 2025, subject to certain conditions being satisfied.
Under the terms of the agreement, Newmont expects to receive gross proceeds of up to USD150 million, which includes:
- Cash consideration of USD10 million, due upon closing;
- Equity consideration of USD40 million in the form of Fuerte shares, to be issued upon closing;
- A 3% net smelter return royalty on the Coffee Project, which Fuerte retains the option to repurchase for up to USD100 million.
The context: Fuerte is a resource company, focused on copper and precious metals projects in Mexico and Chile. It is backed by key shareholders, Pierre Lassonde, who served as Newmont’s president from 2002 to 2007, and Trinity Capital Partners Corporation.
In February 2024, Newmont confirmed plans to divest its non-core assets, including six operations and two projects from its Australian, Ghanaian, and North American business units. The Coffee Project, a large gold deposit in the Yukon, marks the last of those planned divestments.
What they said: “The sale of the Coffee Project reflects our ongoing efforts to streamline the portfolio and sharpen our focus on core operations,” said Newmont CEO Tom Palmer.
“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 source: Newmont media release
