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Artemis Prices Final EPC Contract for the Process Plant with Sedgman at $318 Million

Press Release

Vancouver, British Columbia – Artemis Gold Inc. – September 08, 2022 (TSX-V: 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,

On behalf of the Board of Directors

“Steven Dean”

Chairman and Chief Executive Officer

For further information: Nicholas Campbell, VP Capital Markets, +1 (604) 558-1107.


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