Fuerte Metals aims to raise $15 million for Yukon gold project
Fuerte Metals Corp. [FMT-TSXV] said it is aiming to raise $15 million from a private placement offering and will use the proceeds to fund exploration at its Coffee gold project in the Canadian Yukon.
Under an agreement with a syndicate of agents, the offering will consist of the following:
- Up to 952,380 flow-through common shares, each of which will qualify as flow-through shares under the Income Tax Act (Canada) at a price of $5.25 per FT share, for gross proceeds of $5.0 million.
- Up to 1.65 million special flow-through common shares, each of which will qualify as flow through shares under the Income Tax Act (Canada) priced at $6.04 per special flow-through share for gross proceeds of $10 million.
The company has granted the agents an option to sell an additional 15% of the amount of offered securities on the same terms and conditions. The over-allotment option can be exercised in whole or in part, at any time up to 48 hours prior to closing which is expected to occur on December 18, 2025.
On Tuesday, Fuerte Metals edged up 0.44% or $0.02 to $4.59. The shares trade in a 52-week range of $4.87 and 54 cents.
Fuerte recently agreed to acquire the Coffee project from Newmont Corp. [NEM-NYSE, ASX, PNGX] for $150 million.
Coffee is one of the largest and highest-grade heap leach projects in the world, with 3.0 million in measured and indicated resources within 80 million tonnes at 1.15 g/t (0.18 g/t cut-off). At a higher 0.4 g/t cut-off, Coffee has approximately 2.8 million ounces of measured and indicated resources 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 of 2026. A collaboration agreement with the Tro’ondek Hwech’in First Nation was agreed in 2018, and an impact and benefits deal was signed with the White River First Nation in 2021 that includes life of mine activities.
In addition to Coffee, Fuerte holds a portfolio of copper and gold assets, including the Placeton—Caballo Muerto project in Chile and the Cristina and Yecora projects in Mexico, offering additional growth and exploration upside.
The company recently announced additions to its senior management team, including the two most senior members of Newmont’s Coffee project permitting and external relations team, and two highly accomplished engineers with senior leadership experience at distinguished companies such as Foran Mining Corp. [FOM-TSX, FMCXF-OTCQX], and Torex Gold Resources Inc. [TXG-TSX, OTC-TORXF], underscores the tremendous potential of Coffee.’’