All figures presented in Canadian Dollars,
unless specified otherwise
VANCOUVER, BC, Nov. 16, 2021 /CNW/ - Artemis Gold Inc.
(TSXV: ARTG) ("Artemis" or the "Company") is
pleased to announce that it has received a Silver Stream offer to
enter into a definitive Precious Metals Purchase Agreement (the
"Silver Stream Agreement") with Wheaton Precious
Metals™ Corp. ("Wheaton"), in respect to the Company's
Blackwater Gold Project in British
Columbia ("Blackwater" or "the
Project").
The letter of Offer, as well as a copy of the Silver Stream
Agreement ("ROFR Offer") has been submitted to New Gold Inc.
("New Gold") as required under the terms of an agreement
related to the purchase of Blackwater dated August 21, 2020, which serves to formally trigger
a Right of First Refusal mechanism under that agreement.
Under this mechanism, New Gold has 30 days from the date of
delivery of the ROFR Offer to accept the ROFR Offer and offer
identical terms as the Silver Stream Agreement from Wheaton.
In the event the ROFR Offer is not exercised by New Gold, Artemis
and Wheaton will be free to execute the Silver Stream Agreement
within 120 days. The Silver Stream Agreement will be a subordinated
secured obligation of the Company.
Under the terms of the Silver Stream Agreement, Wheaton will
purchase 50% of the silver production from the mineral reserves of
Blackwater until approximately 18 million ounces of silver have
been delivered, after which the stream reduces to 33% of the silver
production for the life of mine. Wheaton will make an up-front
deposit payment in cash of approximately US$141 million, payable in tranches during the
major works construction of the Project, subject to certain
conditions. In addition, Wheaton will make ongoing payments
equal to 18% of the spot silver prices until the up-front deposit
payment is reduced to zero, and 22% of the spot silver prices
thereafter.
The Silver Stream Agreement also contains a partial buy back
option such that until the earlier of January 1, 2025 or the achievement of commercial
production at Blackwater, Artemis will have a one-time option to
repurchase up to 33% of the Silver Stream on a change of control
for certain consideration.
The proceeds from the Silver Stream Agreement will be used by
the Company to fund the advancement of the development and
construction of the Project.
Steven Dean, Chairman and CEO
commented, "This silver stream provides the capital along with
our cash position to complement the project debt financing
supporting the overall capital required for the development of our
Blackwater project. The cost of capital underlying this
stream is extremely competitive. Under the terms of this
silver stream facility, Artemis retains full upside to
initially 50% increasing to 67% (after delivery of approximately 18
million ounces of Silver) of the by-product silver production from
Blackwater.
Wheaton is a first-tier streaming company with well
recognized in-house technical competencies. Their offer to provide
this stream financing adds further credibility to the technical and
economic strengths of Blackwater".
Further updates will be provided in due course.
On behalf of the Board of Directors,
ARTEMIS GOLD INC.
On behalf of the Board of Directors
"Steven Dean"
Chairman and Chief Executive Officer
For further information: Chris
Batalha, CFO and Corporate Secretary, +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 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.