- FACILITY PROVIDES AN ADDITIONAL
$40 MILLION STANDBY COST OVERRUN FACILITY: - BLACKWATER PROJECT UPDATE
All figures presented in Canadian Dollars, unless specified otherwise
The execution of the Commitment Letter represents a strong statement of support of the technical and economic merits of Blackwater by
Currently Artemis remains confident in the
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. - 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 prices 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 ounce[1]) to 250,000 gold ounces (at a hedge price ofC$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.
We remain confident in the current initial capital cost estimate of
The Company is looking forward to continuing to work with
Further updates regarding the development of the Project include:
- 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,
On behalf of the Board of Directors
"
Chairman and Chief Executive Officer
Neither the
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
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 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 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.
____________________________ | |
1 | The hedge prices assume gold prices ranging from |
SOURCE
© Canada Newswire, source