Trading
Symbol: TSX-V: ARTG
All figures presented in Canadian Dollars,
unless specified otherwise
VANCOUVER, BC, Sept. 8,
2022 /CNW/ - Artemis Gold Inc. – September 08, 2022 (TSXV: ARTG) ("Artemis"
or the "Company") is pleased to announce that, as planned,
it has executed a final contract (the "EPC Contract") for
the EPC scope of works for the engineering, procurement,
construction and commissioning of the processing plant and
associated infrastructure at the Company's Blackwater project
("Blackwater" or the "Project") with Sedgman Canada
Limited ("Sedgman"), a CIMIC Group Company.
The EPC Contract has been finalized at $318 million (the "EPC Price"), materially
consistent with the previously announced EPC award outlined in the
May 2, 2022 news release entitled
"Artemis Gold Awards Process Plant EPC to Sedgman for the
Blackwater Gold Project".
The EPC Contract is supported by performance security including
bank letters of credit which will underwrite the financial
performance and obligations of Sedgman under the EPC Contract.
The project schedule supporting the EPC Contract with Sedgman
includes the following assumptions:
- Receipt of the BC Mines Act and related permits in the Fall of
2022;
- Construction mobilization and major works preparations commence
in Q1 2023 with process plant bulk earthworks scheduled to be
completed prior to the start of major works;
- Commissioning activities of the process facility to commence in
H1 2024;
- First gold pour expected in Q3 2024.
The EPC Contract terms provide for potential cost adjustments of
certain components of construction representing approximately less
than 15% of the EPC Price, including the potential for cost
adjustments (positive + negative) from further definition of
quantities, raw material costs and transportation/shipping costs.
The cost adjustments are to be finalized prior to the start of
major works construction.
The EPC Contract supersedes the temporary interim service
agreement announced on May 2,
2022.
Artemis continues to evaluate the potential to award additional
construction packages under an EPC agreement type structure to
further enhance the risk management of the total capital
expenditure for Blackwater.
When combined with the EPC award for the Power Transmission Line
announced on August 18, 2021, the
percentage of the estimated total capex for Blackwater under EPC is
on track to target ~55-60% of the initial Stage 1 development
capital in a lump sum EPC type arrangement prior to the start of
major works construction.
Sedgman Canada Limited is a wholly owned subsidiary company of
Sedgman Pty Limited, a CIMIC Group company. CIMIC Group is an
engineering-led construction, mining, services and public private
partnerships leader working across the lifecycle of assets,
infrastructure and resources projects. CIMIC's mission is to
generate sustainable shareholder returns by delivering innovative
and competitive solutions for clients and safe, fulfilling careers
for its people. With a history since 1899, and around 29,000 people
in around 20 countries, CIMIC strives to be known for principles of
Integrity, Accountability, Innovation and Delivery, underpinned by
Safety. CIMIC is a member of the Dow Jones Sustainability Australia
Index and FTSE4Good.
Steven Dean, Chairman and CEO
commented, "The execution of the EPC Contract for the process
plant and associated infrastructure at this price is a very
significant achievement by our team in the current economic
environment. Since we announced the award of the EPC to Sedgman,
Sedgman has secured selected long-lead time equipment for
Blackwater and progressed detailed engineering, whilst further
refining quantities of structural steel/platework and piping
requirements with the Artemis execution team. In partnership, we
will work to finalize the design and engineering of the Blackwater
project in advance of a start of major development activities.
Blackwater is on track for a start of major construction activities
in Q1 2023, following receipt of Mines Act and other permits in
Fall 2022, with commissioning in H1 2024".
Further updates will be provided in due course.
Qualified Person
Jeremy Langford, FAUSIMM, a
Qualified Person as defined by National Instrument 43-101, has
reviewed and approved the scientific and technical information in
this news release.
On behalf of the Board of Directors,
ARTEMIS GOLD INC.
On behalf of the Board of Directors
"Steven Dean"
Chairman and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding
Forward-Looking Information
This news release contains certain "forward looking
statements" and certain "forward-looking information" as defined
under applicable Canadian and U.S. securities laws (together,
"forward-looking statements"). Forward-looking
statements can generally be identified by the use of
forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans",
"potential", "target" or similar terminology. Forward-looking
statements in this news release include, but are not limited to,
statements and information related to the plans of the Company
regarding the Project and other statements regarding future plans,
expectations, guidance, projections, objectives, estimates and
forecasts, as well as statements as to management's expectations
with respect to such matters.
Forward-looking statements and information are not historical
facts and are made as of the date of this news release. These
forward-looking statements involve numerous risks and uncertainties
and actual results may vary. Important factors that may cause
actual results to vary include without limitation, risks related
to the ability of the Company to accomplish its plans and
objectives with respect to the Project within the expected timing
or at all; the timing of the finalization of definitive documents
related to the PLF and the satisfaction of other conditions
precedent; the timing and receipt of certain approvals, changes in
commodity and power prices, changes in interest and currency
exchange rates, risks inherent in exploration estimates and
results, timing and success, inaccurate geological and
metallurgical assumptions (including with respect to the size,
grade and recoverability of mineral reserves and resources),
changes in development or mining plans due to changes in
logistical, technical or other factors, unanticipated operational
difficulties (including failure of plant, equipment or processes to
operate in accordance with specifications, cost escalation,
unavailability of materials, equipment and third party contractors,
delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters), political risk,
social unrest, and changes in general economic conditions or
conditions in the financial markets. In making the forward-looking
statements in this news release, the Company has applied several
material assumptions, including without limitation, the assumptions
that: (1) market fundamentals will result in sustained mineral
demand and prices; (2) the receipt of any necessary approvals and
consents in connection with the development of any properties; (3)
the availability of financing on suitable terms for the
development, construction and continued operation of any mineral
properties; and (4) sustained commodity prices such that any
properties put into operation remain economically viable. The
actual results or performance by the Company could differ
materially from those expressed in, or implied by, any
forward-looking statements relating to those matters. Accordingly,
no assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, or if any
of them do so, what impact they will have on the results of
operations or financial condition of the Company. Except as
required by law, the Company is under no obligation, and expressly
disclaims any obligation, to update, alter or otherwise revise any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
SOURCE Artemis Gold Inc.