Artemis Gold has completed the acquisition of the Blackwater Gold Project in central B.C. from New Gold Inc.
This acquisition is in pursuant to the terms of an asset purchase agreement dated June 9 this year, stated a Aug. 24 news release issued on behalf of the Board of Directors of Artemis Gold and the Chairman and CEO Steven Dean.
Mayor Gerry Thiessen said, “this is an exciting announcement for the residents of this area. We are looking forward to meeting the leadership of Artemis Gold in person.”
Artemis has acquired all of New Gold’s property, assets and rights related to the project and now holds a 100 percent interest in the project.
The purchase price for the project is comprised of — an initial payment of $140 million which has been paid; 7,407,407 common shares in the capital of the Company at a deemed issue price of $2.70 per Consideration Share, which has now been issued to New Gold; a cash payment of $50 million to be paid one year following Closing; and a secured gold stream participation in favor of New Gold.
New Gold announced sale of its Blackwater Project to Artemis Gold on June 9.
The Blackwater Gold Project is estimated at $1.8 billion and the project got both Federal and Provincial Environmental Assessment approvals. However, the project still needs to go through the mine permitting phase.
The project consists of the construction, operation and closure of an open-pit gold and silver mine located 110 km southwest of Vanderhoof, B.C. The Blackwater Gold Project sits on the traditional lands of the Ulkatcho (Anahim Lake) First Nation and Lhoosk’uz Dené (Kluskus) Nation.
The Blackwater Gold project is estimated to produce 60,000 tonnes per day of gold and silver ore, for a mine life of 17 years.