ARTEMIS PRICES FINAL EPC CONTRACT FOR THE PROCESS PLANT WITH SEDGMAN AT $318 MILLION 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
September 08, 2022 Trading Symbol: TSX-V: ARTG
ARTEMIS PRICES FINAL EPC CONTRACT FOR THE PROCESS PLANT WITH SEDGMAN AT $318 MILLION
All figures presented in Canadian Dollars, unless specified otherwise
Vancouver, British Columbia – Artemis Gold Inc. – September 08, 2022 (TSX-V: ARTG) ("Artemis" or the
"Company") is pleased to announce that, as planned, it has executed a final contract (the “EPC Contract”)
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”) with Sedgman Canada Limited (“Sedgman”), a CIMIC Group Company.
The EPC Contract has been finalized at $318 million (the “ EPC Price ”), materially consistent with the
previously announced EPC award outlined in the May 2, 2022 news release entitled “Artemis Gold Awards
Process Plant EPC to Sedgman for the Blackwater Gold Project”.
The EPC Contract is supported by performance security including bank letters of credit which will
underwrite the financial performance and obligations of Sedgman under the EPC Contract.
The project schedule supporting the EPC Contract with Sedgman includes the following assumptions:
• Receipt of the BC Mines Act and related permits in the Fall of 2022;
• Construction mobilization and major works preparations commence in Q1 2023 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 H1 2024;
• First gold pour expected in Q3 2024.
The EPC Contract terms provide for potential cost adjustments of certain components of construction
representing approximately less than 15% of the EPC Price, including the potential for cost adjustments
(positive + negative) from further definition of quantities, raw material costs and transportation/shipping
costs. The cost adjustments are to be finalized prior to the start of major works construction.
The EPC Contract supersedes the temporary interim service agreement announced on May 2, 2022.
Artemis continues to evaluate the potential to award additional construction packages under an EPC
agreement type structure to further enhance the risk management of the total capital expenditure for
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
When combined with the EPC award 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 ~55-60% of the
initial Stage 1 development capital in a lump sum EPC type arrangement prior to the start of major works
construction.
Sedgman Canada Limited is a wholly owned subsidiary company of Sedgman Pty Limited, a CIMIC Group
company. CIMIC Group is an engineering -led construction, mining, services and public private
partnerships leader working across the lifecycle of assets, infrastructure and resources proj ects. 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, CIM IC 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 execution of the EPC Contract for the process plant
and associated infrastructure at this price is a very significant achievement by our team in the current
economic environment. Since we announced the award of the EPC to Sedgman, Sedgman has secured
selected long-lead time equipment for Blackwater and progressed detailed engineering, whilst further
refining quantities of structural steel/platework and piping requirements with the Artemis execution team.
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 is on track for a start of major construction activities
in Q1 2023, following receipt of Mines Act and other permits in Fall 2022, with commissioning 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
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
3083 Three Bentall Centre, 595 Burrard Street, Vancouver, BC, V7X 1L3
Telephone: 604.558.1107 Fax: 604.566.9050 [email protected]
www.artemisgoldinc.com
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 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 of the finalization of definitive documents re lated 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, t iming 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 mark ets. 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.