Artemis Awards GMP (Guaranteed Maximum Price) on Blackwater Electricity Transmission Line
All amounts are stated in Canadian Dollars unless otherwise noted
(Vancouver, August 18, 2021) – Artemis Gold Inc. (TSX-V: 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.
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
Chairman and Chief Executive Officer
For further information: Nicholas Campbell, VP Capital Markets, +1 (604) 558-1107.
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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.