Newmont agrees to sell Coffee project for up to $150M

Executive Summary

• Newmont Corp. agreed to sell its Coffee project in Yukon, Canada to Fuerte Metals Corp. for up to $150 million total consideration.
• Consideration consists of $10 M cash, $40 M equity (34 M Fuerte shares) and a 3.0% NSR royalty that Fuerte may repurchase for up to $100 M.
• The transaction is expected to close in Q4 2025, completing Newmont’s divestiture of all six operations and two projects previously classified as held‑for‑sale.

Key Details

• Cash consideration: $10 million payable at closing.
• Equity consideration: $40 million in Fuerte Metals shares (approximately 34 million shares), representing ~27% of Fuerte’s issued & outstanding capital; shares to be issued to Goldcorp Canada Ltd., a Newmont subsidiary.
• Royalty component: 3.0% net smelter return (NSR) royalty on the Coffee project, with an option for Fuerte to repurchase the royalty for up to $100 million.
• Closing timeline: Expected in Q4 2025, subject to customary closing conditions.
• Strategic context: Completes Newmont’s earlier announced intent (Feb 2024) to divest non‑core assets; after this sale, all six operations and two projects held for sale are removed from Newmont’s financial statements.
• Advisers: BMO Capital Markets (financial adviser); Goodmans LLP (legal adviser).
• Early warning disclosure: Shares issued to Goldcorp Canada Ltd.; Newmont will hold a significant equity stake in Fuerte and may adjust its ownership thereafter based on market conditions and strategic evaluation.

Notable Quotes

“The sale of the Coffee project reflects our ongoing efforts to streamline the portfolio and sharpen our focus on core operations,” said Tom Palmer, CEO of Newmont.
“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.”