Newmont sells Coffee gold project for $150 million
Newmont Corp (NYSE: NEM) has agreed to sell its Coffee gold project in Canada’s Yukon Territory to Fuerte Metals (TSXV: FMT) for up to $150 million, completing a year-long divestment plan.
Under the deal, Newmont will receive $10 million in cash at closing and $40 million in Fuerte shares. The company will also retain a 3% net smelter return royalty on the project, which Fuerte can repurchase for up to $100 million.
The sale finalizes Newmont’s exit from eight non-core assets it put on the block in early 2024, including the Éléonore mine in Quebec, the Musselwhite and Porcupine mines in Ontario and its 70% stake in the Havieron project in Western Australia.
Newmont chief executive officer Tom Palmer said the transaction aligns with the company’s strategy to streamline its portfolio and sharpen focus on core operations. He added that Fuerte is positioned to advance Coffee “in a socially and environmentally conscious manner” while maintaining commitments to First Nations and other stakeholders.
Through the deal, Newmont will hold about 27% of Fuerte’s shares via its Goldcorp Canada subsidiary, joining Agnico Eagle, Pierre Lassonde, and Trinity Capital Partners as major shareholders. Lassonde served as Newmont’s president from 2002 to 2007.
The US-based gold giant, which continues to operate the Brucejack and Red Chris mines in Canada, applied last week to voluntarily delist from the Toronto Stock Exchange, citing low trading volumes.
‘Transformational‘
Fuerte Metals called the Coffee acquisition transformational. CEO Tim Warman said the project is on track to complete permitting and has the backing of strong technical and financial partners. Coffee holds one of the largest and highest-grade heap leach resources globally, with three million ounces of measured and indicated resources at 1.15 g/t gold.
Fuerte said it plans to finish a preliminary economic assessment in the first half of 2026 and a feasibility study later that year.
Erdene pours first gold at Mongolia’s Bayan Khundii mine
Canadian miner Erdene Resource Development (TSX:ERD) has poured its first gold at the Bayan Khundii mine in southwestern Mongolia, marking a major milestone for the project less than a decade after discovery.
Erdene President and CEO Peter Akerley said the deposit, first identified in 2015, has quickly become a cornerstone of the Khundii Minerals District.
“With construction of a 242-kilometre power line, mining underway, the process plant commissioned and first gold doré poured in just 22 months, the team deserves tremendous credit,” he said.
The mine is expected to rank among the highest-grade open-pit operations globally. It is projected to reach nameplate capacity in late 2025, producing about 85,000 ounces annually at a low-quartile all-in sustaining cost. Total reserves stand at 513,700 ounces at an average head grade of 4 grams per tonne, including the Dark Horse satellite deposit.
Gold from Bayan Khundii will be sold to Mongolia’s Central Bank at spot prices, strengthening the country’s foreign currency reserves.
Record speed
Akerley said the gold pour comes just 10 years after Erdene geologists discovered high-grade surface mineralization and five years after completing a feasibility study. He said this is one of the fastest timelines in recent memory for a mine to move into production.
It also comes at times when gold prices are skyrocketing, hitting on Monday a new record high of $3,682.51 per ounce. Year-to-date gold is up to 40%, with geopolitical uncertainty and robust central bank buying providing strong momentum for the safe-haven metal.
Ownership of the project is split between Erdene, which holds a 50% stake and a 5% net smelter return royalty after the first 400,000 ounces, and Mongolian Mining Corporation (MMC), which holds the other half.
MMC secured its interest through a $40-million investment in 2023, acquiring half of Erdene’s subsidiary, Erdene Mongol LLC, which holds the licences.
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