All amounts are stated in Canadian Dollars
unless otherwise noted
Trading Symbol: TSX-V:
ARTG
VANCOUVER, BC, Aug. 18, 2021 /CNW/ - Artemis Gold Inc.
(TSXV: ARTG) ("Artemis" or the "Company") is pleased
to announce that after a competitive bidding process, the Company
has executed a binding memorandum of understanding
("MOU") with a consortium of Carisbrooke Consulting Inc.,
Westpark Electric Ltd. and 1319071
B.C. Ltd., the latter entity representing Nadleh Whuten, the
Saik'uz First Nation and the Stellat'en First Nation, and all
entities comprising the consortium collectively referred to as
"Preferred GMP Proponent". The MOU provides a
guaranteed maximum price ("GMP") for a fixed-price
Engineering, Procurement and Construction ("EPC") contract
to construct a 135 kilometer long 230kV electricity transmission
line and High Voltage ("HV") substation (the "Power
Facilities") for the Company's Blackwater Gold Project
("Blackwater" or the "Project") in Central British
Columbia.
The selection of the Preferred GMP Proponent was based on a
proposal to engineer and construct the Power Facilities for a
GMP of up to $80 million (before duties or
taxes), subject to technical or commercial changes requested by
Artemis. The MOU outlines the terms under which the Preferred
GMP Proponent will undertake further detailed engineering, which
will form the basis of a final fixed price EPC contract. The
GMP cost for the Power Facilities is consistent with the capital
estimates in the Company's 2020 Pre-Feasibility Study technical
report entitled "Blackwater Gold Project British Columbia NI 43-101
Technical Report on Pre-Feasibility Study" dated August 26, 2020 ("2020 PFS").
A final fixed price EPC contract on the Power Facilities is the
second largest component of the capital cost of Blackwater at
approximately 14% of the 2020 PFS estimate of initial development
capital. Combined with the previously announced GMP for the
process plant and associated facilities, Artemis has secured GMP
MOU's for 53% of the total initial development capital for
Blackwater as outlined in the 2020 PFS. Artemis' industry
leading development strategy manages the capital and schedule risks
associated with key capital cost components of the Blackwater
development.
Ultimately, Artemis is targeting approximately 60% of the
initial development capital for Blackwater to be insulated from
capital cost and schedule overruns once final fixed price EPC
contracts for the processing plant, onsite infrastructure, Power
Facilities and potentially other site preparation and
infrastructure have been executed.
The Preferred GMP Proponent has undertaken preliminary
engineering, planning and other work and will be delivering a final
fixed price EPC contract in connection with the Power Facilities
for Artemis' consideration in Q4 2021.
Steven Dean, Chairman and CEO
commented, "The execution of this MOU represents a significant
investment of time and effort from management and GMP bidders over
the past several months. The Preferred GMP Proponent's GMP bid is
in line with the costs outlined in the 2020 PFS, which further
derisks and validates the Blackwater project. Following a rigorous
adjudication process of competitive proposals, we are very pleased
to be working with the Preferred GMP Proponent to develop the Power
Facilities for Blackwater. This GMP should give investors and
project debt lenders greater confidence in the proposed schedule
and initial capital cost to develop Blackwater on time and on
budget."
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.
ARTEMIS GOLD INC.
On behalf of the Board of Directors
"Steven Dean"
Chairman and Chief Executive Officer
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 (together,
"forward-looking statements"). Forward-looking
statements 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 in
this news release include, but are not limited to, statements and
information related to the plans of the Company regarding the
Project and other statements regarding future plans, expectations,
guidance, projections, objectives, estimates and forecasts, as well
as statements as to management's expectations with respect to such
matters.
Forward-looking statements and information are not historical
facts and are made as of the date of this news release. 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 Project within the expected timing
or at all; the timing and receipt of certain approvals, changes in
commodity and power prices, changes in interest and currency
exchange rates, risks inherent in exploration estimates and
results, timing and success, inaccurate geological and
metallurgical assumptions (including with respect to the size,
grade and recoverability of mineral reserves and resources),
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 and third party contractors,
delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters), political risk,
social unrest, and changes in general economic conditions or
conditions in the financial markets. 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 any properties; (3)
the availability of financing on suitable terms for the
development, construction and continued operation of any mineral
properties; and (4) sustained commodity prices such that any
properties put into operation remain economically viable. The
actual results or performance by the Company could differ
materially from those expressed in, or implied by, any
forward-looking statements relating to those matters. 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
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 as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
SOURCE Artemis Gold Inc.