Business
Artemis Gold to Acquire Blackwater Project From New Gold
AT 9.5 MILLION M&I OUNCES*, BLACKWATER IS ONE OF THE LARGEST OPEN-PIT GOLD DEPOSITS IN CANADA ONE OF THE WORLD'S LARGEST EA APPROVED GOLD DEVELOPMENT PROJECTS A
About this update from Artemis Gold Inc
[{"type":"text","content":" AT 9.5 MILLION M&I OUNCES*, BLACKWATER IS ONE OF THE LARGEST OPEN-PIT GOLD DEPOSITS IN CANADA ONE OF THE WORLD'S LARGEST EA APPROVED GOLD DEVELOPMENT PROJECTS All amounts are in Canadian Dollars unless otherwise noted VANCOUVER, BC, June 9, 2020 /CNW/ - ARTEMIS GOLD INC. (\"Artemis\" or the \"Company\") is pleased to announce the signing of an Asset Purchase Agreement (the \"Agreement\") with New Gold Inc. (\"New Gold\") to acquire the Blackwater Gold Project (\"Blackwater\" or the \"Project\") in central British Columbia ( the \"Acquisition\"). Key Acquisition Terms: Initial cash payment of $140 million (the \"Initial Payment\") at closing of the Acquisition (\"Closing\"); Issuance to New Gold of Artemis common shares (the \"Consideration Shares\") equal to the lesser of (a) the number of Consideration Shares having an aggregate deemed price of $20 million and (b) 9.9% of the issued and outstanding Artemis common shares as at Closing; Second cash payment of $70 million, less approximately $20 million (being the aggregate issuance price of the Consideration Shares) 12 months after Closing; An 8% stream at 35% of US$ spot gold price reducing to 4% after 279,908 ounces delivered; The Initial Payment is backstopped by our major shareholder Ryan Beedie; An equity financing is planned to finance some or all of the Initial Payment over the next several weeks, with Board and Management who currently hold approximately 45% of the shares of the Company, planning to commit to approximately half of that equity financing (up to a maximum of $70 million), subject to shareholder approval; Transaction Highlights The addition of a world class asset with Federal and Provincial EA approvals in place, allowing for the possibility of near-term construction; Significant Mineral Resource of 9.5 million ounces, Measured and Indicated*: Robust economics based on the 2014 Feasibility Study. Artemis believes that today's long-term consensus pricing and current spot prices will contribute to driving economic potential. * Refer to Mineral Resource table on page 11. Artemis Strategy to Development Artemis will be targeting improved economics and financeability against the 2014 Feasibility Study (defined below) based on Artemis due diligence including the following: Reducing initial capital expenditures by staging the mine throughput ramp-up while remai...