Artemis GOLD Executes Credit-Approved Commitment Letter FOR $385 Million Project Debt Financing to Develop Blackwater
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
February 24, 2022 Trading Symbol: TSX-V: ARTG
ARTEMIS GOLD EXECUTES CREDIT-APPROVED COMMITMENT LETTER FOR $385 MILLION PROJECT
DEBT FINANCING TO DEVELOP BLACKWATER
• FACILITY PROVIDES AN ADDITIONAL $40 MILLION STANDBY COST OVERRUN FACILITY:
• BLACKWATER PROJECT UPDATE
All figures presented in Canadian Dollars, unless specified otherwise
Vancouver, British Columbia – Artemis Gold Inc. – February 24, 2022 (TSX-V: ARTG) ("Artemis" or the
"Company") is pleased to announce that it has executed a credit-approved commitment letter and term
sheet (“Commitment Letter”) from Macquarie Bank Limited (“Macquarie”) and National Bank of Canada
(“National Bank”) to jointly underwrite a $360 million Project Loan Facility (“ PLF”), to fund a significant
component of the estimated construction costs of the Company’s Blackwater Gold Project (“Blackwater”,
or the “Project”) in central British Columbia. The PLF also provides for up to $25 million in capitalized
interest and a $40 million standby cost overrun facility (“Standby COF”). The Standby COF is an addition
to the terms previously announced on April 9, 2021, and represents a further enhancement of these
financing facilities to de-risk development in the current economic environment.
The execution of the Commitment Letter represents a strong statement of support of the technical and
economic merits of Blackwater by Macquarie and National Bank , and achieves another important
milestone towards de-risking the development of Blackwater.
Currently Artemis remains confident in the $645 million initial capital cost estimate outlined 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”). Potential future inflationary pressures
remain a risk for development projects and accordingly the Standby COF provides another important risk
management tool at management’s disposal at a competitive cost of capital . The PLF remains subject to
customary conditions precedent, including but not limited to the finalization of definitive documentation.
Highlights of the PLF
Key Terms of the PLF include the following:
• Facility Amount - $360 million , plus up to $25 million for capitalized interest prior to Project
completion, plus a Standby COF in the amount of $40 million . The Company may cancel the
Standby COF once Project development reaches completion.
3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3
Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]
www.artemisgoldinc.com
• Interest Rate –Canadian Dealer Offered Rate (“CDOR”), plus a margin of 4. 5% pre -project
completion, reducing to 4.0% post-completion. Any amounts drawn on the Standby COF will carry
the above pricing plus an additional 2%.
• Fees – Customary Upfront and standby fees for a facility of this nature.
• Repayment and Maturity – Principal and capitalized interest will be repayable in quarterly
installments over six years, with reduced repayments during the period when the Company
expects to undertake its expansion of the Project from phase 1 to phase 2. The PLF can be prepaid
at anytime without penalty.
• Liquidity – Minimum required proceeds of $10 million, Debt Service Reserve of principal and
interest owing in the upcoming quarter.
• Hedging - A hedging program is expected to be put in place following the execution of a definitive
credit agreement pending certain conditions being met. In order to limit the Company’s exposure
to lower gold price s early in the mine life including during pay -back and in support of overall
project economics, the extent of the hedge program may range from 185,000 gold ounces (at a
hedge price of C$2,632 per gold ounce1) to 250,000 gold ounces (at a hedge price of C$2,369 per
gold ounce1).
Closing of the PLF will be subject to completion of final due diligence, definitive documentation and other
typical conditions precedent for a financing of this nature. The Company is targeting the execution of a
definitive credit agreement during Q2 2022.
Steven Dean, Chairman and CEO commented, “The committed underwriting of the PLF by two renowned
global banks is another important step towards de-risking the development of Blackwater. This underlines
the robust economics and debt carrying capacity of the Project, further evidenced by the addition of the
standby cost overrun facility to the original PLF proposal.
We remain confident in the current initial capital cost estimate of $645 million in the Feasibility Study as
at September 2021 , but without the benefit of a crystal ball the risk of the impact of future inflationary
pressures on our capital estimates is not entirely within our control. The standby cost overrun facility gives
management another important risk management tool at a very competitive cost of capital during a period
of variable inflation and supply chain challenges.
The Company is looking forward to continuing to work with Macquarie and National Bank to finalize
conditions precedent to a definitive credit agreement in parallel with the execution of fixed price EPC
Contracts, and securing final major permits while continuing to target breaking ground on major
construction in the summer of 2022”.
Further updates regarding the development of the Project include:
1 The hedge prices assume gold prices ranging from US$1,800 per gold ounce to US$2,000 per gold ounce, translated to
Canadian dollar equivalent at a CAD/USD rate of 0.76.
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 early works program at Blackwater is expected to commence in Spring 2022 to prepare the
site in order to accommodate the start of major works construction activities.
• Expected award of fixed price engineering, procurement and construction (“ EPC”) contracts for
the process plant and power transmission lines in Spring 2022.
• Artemis continues to target receipt of the BC Mines Act permit in the summer of 2022 with major
construction activities commencing thereafter.
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, +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 identi fied 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 act ual
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 finalization 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 rate s, 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, equipm ent 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 genera l 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
3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3
Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]
www.artemisgoldinc.com
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 implie d 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.