Fuerte Metals to Acquire Newmont's Coffee Gold Project for Up to $150 Million

Fuerte Metals to Acquire Newmont's Coffee Gold Project in Strategic Transaction

Fuerte Metals Corporation (TSXV: FMT, OTCQB:FUEMF) has announced a definitive agreement to acquire the Coffee Gold Project in Canada's Yukon Territory from Newmont Corporation (NYSE: NEM, TSX: NGT) for a total consideration of up to $150 million (C$206.47 million). This transaction is poised to significantly expand Fuerte Metals' gold project portfolio, while simultaneously concluding Newmont's strategic divestment of non-core assets.

Transaction Details and Financial Structure

The consideration for the Coffee Gold Project is structured in a multi-tiered approach, totaling up to $150 million. Upon closing, Newmont will receive an initial $10 million in cash. Additionally, Fuerte Metals will issue $40 million in common and preferred shares to Newmont, which translates to approximately 27% of Fuerte's issued and outstanding capital, held by Newmont's subsidiary Goldcorp Canada Ltd. This share issuance comprises 22,729,126 common shares and 10,842,989 preferred shares.

Furthermore, Fuerte Metals will grant Newmont a 3% Net Smelter Return (NSR) royalty on future production from the Coffee Project. Fuerte retains the option to repurchase this royalty for up to $100 million at any time up to one year after announcing commercial production. The transaction has received unanimous approval from Fuerte's board of directors and is anticipated to close by October 19, 2025, subject to customary closing conditions and regulatory approvals.

Strategic Implications for Both Entities

For Fuerte Metals, this acquisition represents a transformational opportunity, positioning the company with a new flagship asset. The Coffee Gold Project hosts a substantial 3.0 million ounces of Measured and Indicated resources within 80 million tonnes at an average grade of 1.15 g/t gold, making it one of the largest and highest-grade heap leach projects globally. This addition significantly enhances Fuerte's resource base and growth trajectory within the gold mining sector.

Newmont, a major gold producer, completes its announced plan to sell non-core assets, a strategic initiative that began in February 2024. The divestment of the Coffee Project is the final step in a program that included six operations and two projects across various global regions. This strategy aims to streamline Newmont's portfolio, focusing on "Tier 1" assets characterized by longer mine lives and lower operational costs, thereby reducing operational complexity and strengthening its balance sheet.

"The acquisition of Coffee is highly transformational for Fuerte," stated Tim Warman, CEO of Fuerte Metals, emphasizing the significance of this deal for the company's future.

Tom Palmer, Newmont's Chief Executive Officer, commented, "The sale of the Coffee Project reflects our ongoing efforts to streamline the portfolio and sharpen our focus on core operations."

Broader Market Context and Project Attributes

The transaction aligns with a broader trend of consolidation within the gold sector, where major producers optimize their portfolios while development-stage companies acquire promising assets. The Coffee Gold Project is situated in Canada's Yukon Territory, an emerging mining jurisdiction noted for its exceptional geology, improving infrastructure, and strong government and First Nations support. These factors contribute to a de-risked development pathway for the project.

The project has also benefited from extensive prior work by previous owners, including Goldcorp and Newmont, with over C$300 million collectively spent on exploration, drilling, and engineering. Notably, the project received a positive decision under the Yukon Environmental and Socio-economic Assessment Act (YESAA) in 2022, indicating advanced-stage permitting that is expected to accelerate its development timeline.

Outlook and Development Timeline

Following the expected closing of the transaction, Fuerte Metals has outlined an ambitious schedule to advance the Coffee Gold Project towards production. The company targets the completion of a Preliminary Economic Assessment (PEA) in the first half of 2026, followed by a comprehensive Feasibility Study (FS) in the second half of 2026. Industry analysts suggest a potential construction decision could occur within 24-36 months after the transaction closes, with development-stage gold projects typically requiring 3-5 years from acquisition to production.

To support these development plans, Fuerte Metals is undertaking a concurrent equity financing of up to C$50 million. The detailed capital expenditure requirements for construction and operation are anticipated to be defined further by the upcoming economic assessments, with a clear path to production being a key focus for the company.