Press Release
October 10, 2024
Vancouver, British Columbia – 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
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
Investor Relations contact
Meg Brown
Vice President, Investor Relations
mbrown@artemisgoldinc.com
+1 778 899 0518
Media relations contact
media@artemisgoldinc.com
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