TSXV: ARTG
References to Canadian dollars are denoted as
"C$" and references to US dollars as "US$"
VANCOUVER, BC, June 15,
2023 /CNW/ - Artemis Gold Inc. (TSXV: ARTG)
("Artemis Gold" or the "Company") announces that as a
result of internal engineering analysis, it has committed to
additional investments as part of its Phase 1 development of the
Blackwater Mine ("Blackwater") in order to facilitate the
potential fast-tracking of the Phase 2 expansion.
In support of these additional investments, the Company has
amended the gold stream agreement with Wheaton Precious Metals
Corp. ("Wheaton") which will provide an additional US$40 million (C$54million) in funding at a very low cost of
capital.
The additional investments during Phase 1 include additional
structural steel and increased conveyor belt widths in the crushing
circuits, as well as the introduction of variable-speed-drives to
the ball mill. Electrical components have also been upgraded to
facilitate the Phase 2 requirements and to include optionality in
relation to the use of redundancy back-up power sources. Other
optimizations include upsizing of the oxygen plant coupled with
down-shaft-sparging of oxygen to the pre-leach and carbon-in-leach
("CIL") trains, along with the optimization of the CIL
layout in order to facilitate non-intrusive expansion to Phase 2,
as well as full conversion of the detoxification process to remove
the need for tanker-supplied liquid sulphur dioxide.
These investments in the Phase 1 initial capital are expected to
allow the Company to further optimize throughput in the early years
of operation. This is particularly significant as it is expected
that early ore types fed to the mill will be considerably softer
than the maximum ore hardness contemplated across the life of mine
plan in the September 2021
Feasibility Study.
The cost of these additions, together with over-budget
expenditures on permitting costs and additional bonding costs
connected to those permits, will require additional funding of
approximately C$50 million.
Steven Dean, Chairman and Chief
Executive Officer of Artemis Gold, said "We have been exploring
these options internally for some time. This announcement is the
logical next step and importantly provides the additional funding
to further pursue these optimizations at a low cost of capital with
a great partner in Wheaton, without a material dilution of the net
asset value per share for shareholders."
The amendment to the Gold Stream Agreement has been achieved
with a simple increase in the number of ounces to be delivered to
Wheaton prior to the reduction in Wheaton's stream participation
from 8% to 4% (previously expected to occur in 2034 based on the
September 2021 Feasibility study
schedule), which effectively provides Wheaton with an interest in
approximately 92,000 additional gold ounces to be delivered
starting in approximately 2034 (subject to certain delivery
thresholds being met).
This mechanism is akin to a pre-pay and grants no additional
stream percentage participation in Blackwater by Wheaton.
"Since Wheaton's acquisition of the Gold and Silver Streams on
Blackwater in 2021, we have been impressed with the progress the
Artemis Gold team has made in de-risking the project and advancing
construction activities," said Randy
Smallwood, Wheaton's President and Chief Executive Officer.
"Wheaton is excited to continue working beside our partner, Artemis
Gold, and to contribute to the success at Blackwater."
With the commitment of the additional US$40 million funding under the Gold Stream, the
optimized initial capital for Phase 1 construction of Blackwater is
fully funded. In addition to receiving its initial US$35.2 million deposit under the Silver Stream
on June 9, 2023, the Company has also
now received its initial US$10
million deposit under the amendment to the Gold Stream.
The initial capital to complete to first gold pour is now
estimated to range between C$730
million and C$750 million, of
which the Company had incurred approximately C$150 million as at the end of May 2023. The Company's cash balance at the end
of May 2023 totalled approximately
C$47 million.
Overall project construction as of May
31, 2023, stands at approximately 20% complete.
While the Company believes it has captured all known
inflationary impacts plus contingencies to completion to gold pour
in this estimate, it will provide updates on any material changes
to this estimate on a quarterly basis through to commissioning and
first gold pour in H2 2024.
The Company intends to commission an optimization engineering
study to formally outline the benefits of the installation of the
additional equipment outlined above and to confirm the benefits of
advancing the Phase 2 expansion earlier than contemplated in the
September 2021 Feasibility Study. The
results of this study are expected to be released in Q4 2023.
The current gold price in Canadian dollars of approximately
C$2,700 supports this initiative as
that price is 33% higher than the C$2,025 equivalent price used in the September 2021 Feasibility Study. Note also that
the vast majority of Blackwater's operating costs are expected to
be denominated in Canadian dollars.
About Artemis Gold Inc.
Artemis Gold Inc. is a well-financed, growth-oriented gold
development company with a strong financial capacity aimed at
creating shareholder value through the identification, acquisition,
and development of gold properties in mining-friendly
jurisdictions. The company's current focus is construction of the
Blackwater Mine project in central British Columbia approximately 160km southwest
of Prince George and 450km
northeast of Vancouver. The
project is one of the largest capital investments in the
Bulkley-Nechako, Fraser-Fort George
and Cariboo regions of B.C. in the last decade. The first pour of
gold and silver from Blackwater Mine is expected H2 2024 and the
mine is expected to be in production for a minimum of 22 years.
Artemis Gold trades on the TSX-V under the symbol "ARTG". For more
information visit: artemisgoldinc.com
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.
ARTEMIS GOLD INC.
On behalf of the Board of Directors
"Steven Dean"
Chairman and Chief Executive Officer
+1 604 558 1107
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.
Forward-looking statements and information can generally be
identified by the use of forward-looking terminology such as "may",
"will", "expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans", "potential" or similar terminology.
Forward-looking statements and information are not historical
facts, are made as of the date of this news release, and include,
but are not limited to, statements regarding the potential of the
Project; the jobs to be created in connection with the Project; the
contribution of the Project to the economy; opinions of the
Province of British Columbia
regarding the Project and the region; agreements and relationships
with Indigenous partners; the future of mining in British Columbia; the plans of the Company
with respect to the Project, including construction, site
preparation, clearing, consultation with indigenous groups ;; and
other plans and expectations of the Company with respect to the
Project. 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 development of the Project
within the expected timing or at all, the timing and receipt of
certain required approvals, changes in commodity prices, changes in
interest and currency exchange rates, risks inherent in exploration
and development activities, 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 or third party contractors, delays in the receipt of
government approvals, industrial disturbances, job action, and
unanticipated events related to health, safety and environmental
matters), the COVID-19 pandemic, political risk, social unrest,
changes in general economic conditions or conditions in the
financial markets, and other risks related to the ability of the
Company to proceed with its plans for the Project and other risks
set out in the Company's most recent MD&A. 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 the Project; (3) the availability of financing on suitable terms
for the development, construction and continued operation of the
Project; (4) sustained commodity prices such that the Project
remains economically viable; and (5) that the COVID-19 pandemic and
restrictions related thereto will not materially impact the Company
or prevent the Company from operating its business as planned. The
actual results or performance by the Company could differ
materially from those expressed in, or implied by, any
forward-looking statements. 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 disclaim 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.