Newmont Corporation has agreed to sell its Coffee gold project in Canada to Fuerte Metals in a deal worth up to $US150 million ($224 million), marking another step in the gold miner’s sharpened focus on its Tier 1 portfolio.
The agreement will see Newmont receive an initial $US10 million in cash and $US40 million in Fuerte shares, alongside a three per cent net smelter return royalty on future production.
Fuerte retains the option to buy back the royalty for up to $US100 million. The deal is expected to close before the end of the year.
For Newmont, the move represents the final chapter in its asset rationalisation program launched in early 2024, which targeted non-core mines and projects across Australia, Ghana and North America. With the Coffee sale, the company will have completed all eight planned divestments.
“The sale of the Coffee project reflects our ongoing efforts to streamline the portfolio and sharpen our focus on core operations,” Newmont chief executive officer Tom Palmer said.
“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.”
Newmont has signalled it will assess its position in owning Fuerte shares over time, potentially increasing or reducing its stake depending on market conditions.
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