Artemis Awards Gmp (Guaranteed Maximum Price) ON Blackwater Process Plant
3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3
Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]
www.artemisgoldinc.com
NEWS RELEASE
March 29, 2021 Trading Symbol: TSX-V: ARTG
ARTEMIS AWARDS GMP (GUARANTEED MAXIMUM PRICE) ON BLACKWATER PROCESS PLANT
All amounts are stated in Canadian Dollars unless otherwise noted
(Vancouver, March 29, 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 Ausenco Engineering Canada Inc. (“Ausenco”) providing for a guaranteed
maximum price (“GMP”) for a fixed-price Engineering, Procurement and Construction (“EPC”) contract to
construct a 5.5 million tonne per annum processing facility and associated infrastructure (the “Facilities”)
for the Company’s Blackwater Gold Project (“Blackwater” or the “Project”) in Central British Columbia.
The selection of Ausenco as the successful bidder was based on a proposal to engineer and construct the
Facilities for a GMP of $236 million, subject to any technical or commercial changes requested by Artemis.
The MOU outlines the terms under which Ausenco will undertake further detailed engineering, which will
form the basis of a final fixed EPC price, that will not exceed the GMP. This Ausenco GMP is consistent
with 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”).
Artemis’ industry leading development strategy manages the capital an d 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 EPC fixed price contracts for the Facilities ,
electricity transmission line and potentially other site preparation and infrastructure have been executed.
A fixed price EPC contract on the processing facility and associated infrastructure represents by far the
largest single component of the capital cost of Blackwater at approximately 40% of the PFS estimate.
Ausenco has already undertaken a significant amount of detailed engineering work and will be working
towards a final fixed-price EPC contract for the Facilities scheduled for completion in Q3 2021.
Artemis is conducting a competitive bidding process for a GMP proposal in connection with a fixed price
EPC contract for the construction of the electricity transmission line and associated offsite infrastructure,
with an expected GMP award in Q2 2021.
3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3
Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]
www.artemisgoldinc.com
Steven Dean, Chairman and CEO commented, “ The execution of this MOU represents a significant
investment of time and effort from management and multiple GMP bidders over the past several months.
The Ausenco GMP bid serves as further validation of the initial capital costs estimated in the 2020 P FS
with respect to the process plant and associated facilities, further de -risking the development of the
Project. Following a rigorous adjudication process of a n umber of competitive proposals, w e are very
pleased to be working with a world-class engineering firm such as Ausenco. Ausenco was also involved in
the successful development at Atlantic Gold and the award of the GMP should give investors and potential
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
For further information: Nicholas Campbell, VP Capital Markets, +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 statement s regarding future plans, expectations, guidance, projections, objecti ves, 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 s tatements 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 res pect 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
3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3
Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]
www.artemisgoldinc.com
and results, timing and s uccess, inaccurate geological and metallurgical assumptions (including with
respect to the size, grade and recoverability of mineral reserves and resources), changes in development
or mi ning plans due to changes in logistical, technical or other factors, u nanticipated 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 gene ral economic
conditions or conditions in the financial markets. In mak ing 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 t he 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 or al, that may be made from time to time, whether as a result of new inf ormation,
future events or otherwise, except as may be required under applicable securities laws.