A new yeast species was isolated from the sediment under metal-contaminated effluent from a disused metal mine in mid-Wales, UK. BLAST searching with DNA sequence amplified from the ribosomal 26S D1/D2 and ITS regions did not reveal a close match with any previously described species (≥6 % and 3 % divergence, respectively). Phylogenetic analysis indicated that the species was a member of the Saccharomycetales, but did not group closely with other established species, the nearest relative being Wickerhamia fluorescens although bootstrap support was not strong. In addition to its unusual phylogeny, the species also exhibited notable physiological and morphological traits. Isolates exhibited unusually high resistance to both copper and silver in laboratory assays. These phenotypes appeared to be inherent to the species rather than a transient adaptation to the metal-enriched site in Wales, as the same phenotypes were observed in an identical (according to 26S rDNA sequence) isolate from Sao Domingos, Portugal in the Iberian Pyrite Belt. The species exhibited a multipolar budding-type cell division but, unusually, accumulated as rod-shaped cells following division on solid medium, contrasting with the larger ellipsoidal cells observed in broth. This dimorphism could be discerned readily with flow cytometry. The yeast was tolerant of hyper osmotic stress and grew in acidic media (pH 3). This new species is designated Candida argentea and five independent strains are deposited at the National Collection of Yeast Cultures, UK (NCYC 3753 T, 3754, 3755, 3756, 3757). Because of its unusual morphological variation and metal resistance properties, C. argentea may provide opportunities to gain new insights into the physiological and genetic bases of these phenotypes. Results illustrate novel fungal biodiversity that can occur at polluted sites.