ARTEMIS GOLD AWARDS PROCESS PLANT EPC TO SEDGMAN FOR THE BLACKWATER GOLD PROJECT All figures presented in Canadian Dollars, unless specified otherwise
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
May 2, 2022 Trading Symbol: TSX-V: ARTG
ARTEMIS GOLD AWARDS PROCESS PLANT EPC TO SEDGMAN FOR THE BLACKWATER GOLD PROJECT
All figures presented in Canadian Dollars, unless specified otherwise
Vancouver, British Columbia – Artemis Gold Inc. – May 2, 2022 (TSX-V: A RTG) ( "Artemis" or the
"Company") is pleased to announce that , as planned, it has made an award for the EPC scope of works
for the engineering, procurement, construction and commissioning of the processing plant and associated
infrastructure at the Company’s Blackwater project (“Blackwater” or the “Project”) to Sedgman Canada
Limited (“Sedgman”), a CIMIC Group Company.
The award amount of approximately $312 million is consistent with the prescribed budget for the process
plant and selected infrastructure scope of works in the 2021 Feasibility Study technical report entitled
“Blackwater Gold Project NI 43-101 Technical Report on Updated Feasibility Study” dated September 10,
2021 (“FS”).
The EPC contract is expected to be executed by June 30, 2022. The EPC contract will be supported by
performance security including bank letters of credit which will underwrite the financial performance
and obligations of the contractor under the contract.
While the parties finalize the definitive EPC contract, in order to maintain the project schedule, an
interim services agreement has been agreed, the scope of which includes but is not limited to, the
following activities:
• Derisking by way of:
o Procurement and pricing of long lead equipment;
o Potential advance procurement of certain raw materials for fabricators;
o Detailed engineering work commencing in Q2 2022; and
o Progression of quantification of structural steel/platework and piping areas of the
estimate.
• Optimization through refined scope changes.
The project schedule supporting the award to Sedgman includes the following assumptions:
• Construction mobilization and major works preparations commence in Fall 2022 with process
plant bulk earthworks scheduled to be completed prior to the start of major works;
• Commissioning activities of the process facility to commence in Q1 2024;
• First gold pour expected in H1 2024.
3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3
Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]
www.artemisgoldinc.com
The above dates are consistent with the dates stated in the Company’s press release dated March 30,
2022.
The final EPC contract terms will provide for potential cost adjustments of certain components of
construction representing approximately less than 15% of the total contract amount, including the
potential for cost adjustments from further quantity definition. Standard adjustments, including, currency
exchange rates for certa in equipment purchases also apply, and further optimization of the processing
plant with final engineering will occur.
Artemis is also considering awarding additional construction packages under an EPC agreement type
structure to further enhance the risk management of the total capital expenditure for Blackwater.
When combined with the EPC for the Power Transmission Line announced on August 18, 2021, the
percentage of the estimated total capex for Blackwater under EPC is on track to target ~60% of the initial
Stage 1 development capital in a lump sum EPC type arrangement by Q3 2022.
Sedgman Canada Limited is a wholly owned subsidiary company of Sedgman Pty Limited, a CIMIC Group
company. CIMIC Group (ASX:CIM) is an engineering-led construction, mining, services and public private
partnerships leader working across the lifecycle of assets, infrastructure and resources projects. CIMIC’s
mission is to generate sustainable shareholder returns by delivering innovative and competitive solutions
for clients and safe, fulfilling careers for its people. With a history since 1899, and around 29,000 people
in around 20 countries, CIMIC strives to be known for principles of Integrity, Accountability, Innovation
and Delivery, underpinned by Safety. CIMIC is a member of the Dow Jones Sustainability Australia Index
and FTSE4Good.
Steven Dean, Chairman and CEO commented, “The award of the EPC job for the process plant at
Blackwater is another significant milestone for Artemis, reflecting a competitive process involving multiple
bidders. We are very pleased to be working with a world class engineering firm in Sedgman. In partnership,
we will work to finalize the design and engineering of the Blackwater project in advance of a start of major
development activities. Blackwater remains on track for a start of major construction activities following
receipt of Mines Act and other permits in Fall 2022 with a first gold pour in H1 2024”.
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.
On behalf of the Board of Directors,
ARTEMIS GOLD INC.
On behalf of the Board of Directors
“Steven Dean”
Chairman and Chief Executive Officer
3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3
Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]
www.artemisgoldinc.com
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" , “target” 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 expectatio ns 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 of the final ization of definitive documents related to the
PLF and the satisfaction of other conditions precedent; 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 o r 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 m ineral 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.