Gold major Newmont on Monday announced an agreement to sell its Coffee gold project, in Yukon, Canada, to Fuerte Metals for up to $150-million.

With the deal, the miner will have completed the sale of all six operations and two projects it had earmarked for divestment in early 2024, which spanned assets in Australia, Ghana and North America.

Newmont CEO Tom Palmer said on the sale was in line with the company’s strategy to streamline its portfolio and sharpen its focus on core operations.

He added that Fuerte was well positioned to take the project forward “in a socially and environmentally conscious manner”, while maintaining commitments to First Nations partners and other stakeholders.

The consideration includes $10-million in cash upon closing, $40-million in Fuerte shares and a 3% net smelter return royalty, which Fuerte may repurchase for up to $100-million. The transaction is expected to close in the fourth quarter of 2025.

As part of the deal, Newmont will hold about 27% of Fuerte’s issued shares through its wholly-owned subsidiary Goldcorp Canada, joining Agnico Eagle, Pierre Lassonde and Trinity Capital Partners as shareholders. Lassonde served as Newmont's president from 2002 to 2007.

“The acquisition of Coffee is highly transformational for Fuerte. The project is on a clear path to complete permitting and has strong financial and technical partners who have the vision to advance the project to production and build the next great Canadian gold producer," said Fuerte CEO Tim Warman.

"We respectfully acknowledge that protection of the water and lands around the Coffee Creek and mine project areas is of high importance to First Nations. Through cooperation, transparency, and respect, we pledge to continue to build on relationships with Tr'ondëk Hwëch'in, White River First Nation, Selkirk First Nation and the First Nation of Na-Cho Nyäk Dun, on whose Traditional Territories exploration and mining activities will be carried out.”

Warman continued, “We are also grateful to Newmont for their trust in our vision for Coffee, and our core commitment to our local communities, health, safety, and sustainability. We look forward to advancing Coffee to production and building a new Canadian gold producer, creating significant shareholder value and benefiiting Fuerte’s stakeholders in the Yukon and beyond.”

Coffee is one of the largest and highest-grade heap leach projects in the world with a three-million-ounce measured and indicated resource within 80-million tonnes at 1.15 g/t gold (0.18 g/t cut-off). At a higher 0.40 g/t cut-off, Coffee has 2.8-million ounces of measured and indicated resource within 60-million tonnes at 1.44 g/t gold.

Fuerte is targeting completion of a preliminary economic assessment in the first half of 2026 and a feasibility study in the second half.