TSXV: ARTG
VANCOUVER, BC, Oct. 10,
2024 /CNW/ - Artemis Gold Inc. (TSX-V: ARTG)
("Artemis Gold" or the "Company") provides an update on progress at
the Blackwater Mine.
At September 30, 2024, overall
construction of the Blackwater Mine was over 95% complete, the
project is fully funded, and first gold pour is targeted for late
Q4 2024.
The 135-kilometre long 225kV transmission line between the
Blackwater Mine and BC Hydro's Glenannan substation is
complete and was successfully energized with renewable grid power
on October 8, 2024.
Construction of the Tailings Storage Facility will be complete
by the end of October 2024 in advance
of commencement of ore commissioning of the plant. The initial
mining fleet has been commissioned and pre-stripping of the mine,
as well as the construction of haul roads, are well advanced, with
first ore expected to be received to the run of mine ("ROM") pad
over the course of the next month. In addition, Blackwater's
operations camp is complete and has housed operational staff since
late Q3 2024.
In order to accelerate the commissioning of the process facility
to align with the other major construction milestones already
achieved, the Company has taken responsibility for plant
commissioning from the EPC contractor and will commence owner
commissioning and remaining construction activity effective
immediately.
During the past 17 months, the Blackwater Mine has experienced
two separate wildfire events which halted construction at site for
a total of approximately one and a half months during the most
productive months of the build. This resulted in additional fixed
overhead drag on the project, and the benefit of operating cash
flows has been deferred by the period of productive construction
days lost. Management also invested in certain schedule
acceleration initiatives to offset the delays, which have added to
the cost of construction.
Management has been working diligently on cost savings
throughout its construction budget to minimize the impact of the
cost drivers described above.
The Company is, however, updating its initial capital guidance
to first gold pour from (previously) $730
million to $750 million to
(updated) $780 million to
$800 million (an increase of
approximately 7%).
Initial capital guidance excludes other corporate cost variances
including the impact of delayed first revenue on working capital,
higher market interest rates on loan facilities, and other
non-capital items, all of which are included in the Company's fully
funded assessment.
The Company has executed an agreement with National Bank of
Canada to provide additional
stand-by debt funding of up to $65
million, plus up to $10
million in capitalized interest and fees, on a subordinated
and unsecured basis. This funding is in addition to the Company's
existing Project Loan Facility of $360
million plus capitalized interest of up to $25 million (the "PLF"), as well as a cost
overrun facility of $40 million (the
"COF") that was drawn in early October
2024. The stand-by facility is repayable within 12 months,
most likely from a new corporate debt refinancing in 2025, but
otherwise has the same commercial terms as the COF announced on
March 1, 2023.
While the Company does not believe the full amount of the
additional stand-by facility will be required, the facility
provides additional flexibility for any further contingencies,
including the contingencies and cash reserves required by the
Company's lenders under the PLF.
Steven Dean, Chairman and CEO of
Artemis Gold, stated: "I am proud of the fact the project team has
managed to limit the impact of the wildfires, two force majeure
events beyond management's control, to only a 7% increase in
initial capital guidance. This is testament to the team's financial
discipline and deep project development experience. The additional
stand-by funding provided by one of the Company's existing
relationship lenders provides us the financial flexibility to
absorb the financial impact of these events, while managing project
schedule targeting first gold pour in late Q4 2024 and ramp-up of
operations beyond".
Video
Watch here for a short video of the transmission line being
energized: https://youtu.be/zxjAHp0iG0M
Photos
About Artemis Gold
Artemis Gold 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 the construction of
the Blackwater Mine 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 central British Columbia in over a decade. The first
pour of gold and silver at Blackwater is targeted for late Q4 2024.
Artemis Gold trades on the TSX-V under the symbol ARTG. For more
information visit www.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 press release.
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 news release.
Cautionary Note Regarding Forward-looking Information
This press release contains certain forward-looking
statements and forward-looking information as defined under
applicable Canadian and U.S. securities laws. Statements contained
in this press release that are not historical facts are
forward-looking statements that involve known and unknown risks and
uncertainties. Any statements that refer to expectations,
projections or other characterizations of future events or
circumstances contain forward-looking statements. In certain cases,
forward-looking statements and information can be identified using
forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans",
"potential" or similar terminology. Forward-looking statements and
information are made as of the date of this press release, and
include, but are not limited to, statements regarding the potential
of the Blackwater mine 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, including
the duration or impact of the wildfire evacuation order.
These forward-looking statements represent management's
current beliefs, expectations, estimates and projections regarding
future events and operating performance, which are based on
information currently available to management, management's
historical experience, perception of trends and current business
conditions, expected future developments and other factors which
management considers appropriate. Such forward-looking statements
involve numerous risks and uncertainties, and actual results may
vary. Important risks and other 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 estimates
and results, 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 heath, safety and environmental matters), changes in
governmental regulation of mining operations, 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, which is
available on the Company's website at
www.artemisgoldinc.com and on SEDAR+ at
www.sedarplus.ca
In making the forward-looking statements in this press
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) any necessary approvals and consents in connection with the
development of the project will be obtained; (3) financing for the
development, construction and continued operation of the project
will continue to be available on terms suitable to the Company; (4)
sustained commodity prices will continue to make the project
economically viable; and (5) there will not be any unfavourable
changes to the economic, political, permitting and legal climate in
which the Company operates. Although the Company has attempted to
identify important factors that could affect the Company and may
cause actual actions, events, or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause the actual results or performance by the Company
to 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 the financial
condition of the Company. Investors should therefore not place
undue reliance on forward-looking statements. 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
because of new information, future events or otherwise, except as
may be required under applicable securities laws.
SOURCE Artemis Gold Inc.
