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Artemis Announces Results from Blackwater Economic Impact Study

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TSXV: ARTG

  • 457 direct jobs created - Life of mine operations
  • 825 direct jobs created during construction/expansion phases
  • $13.2 billion in value added in B.C. - LIFE OF MINE
  • $2.3 billion in Provincial Government Revenues – life of mine

All amounts are in Canadian Dollars unless otherwise noted

VANCOUVER, BC, Nov. 5, 2020 /CNW/ - ARTEMIS GOLD INC. (TSXV:ARTG) ("Artemis" or the "Company") is pleased to announce the results of an Economic Impact Study (the "Study") conducted on the company's Blackwater Gold project in Central British Columbia, Canada ("Blackwater" or the "Project").

The Company engaged KPMG to produce the Study to be used to measure the updated economic benefits of the staged approach to the development of the Project. The Study focuses on job creation, fiscal revenues, and overall economic wealth creation for the regions within and surrounding the Project, the Province and for Canada.

The statistics produced in the Study are based on the base case scenario of the three-phased development of the Project as reported in the Company's Pre-Feasibility Study ("PFS") dated August 26, 2020 entitled "Blackwater Gold Project British Columbia NI 43-101 Technical Report on Pre-Feasibility Study" over a minimum 23 year mine life. The base case assumes:

  • Initial development capital of $592 million to build a 5.5 million tonne per year mine (years 1-5)
  • $426 million in capital costs to expand to 12 million tonnes per year (years 6-10)
  • $398 million in capital costs to expand to 20 million tonnes per year (years 11-23)

The selected B.C. regions within the Study included the Bulkley-Nechako, Fraser-Fort George and Cariboo. With a total capital investment of $1.5 billion (initial and expansion capital), Blackwater would be one of the largest capital investments for the region in the last ten years.

The tables below provide a summary of the economic impact on the regions, the province and on government revenues:

Table 1: Summary of total economic impact (direct, indirect and induced) on British Columbia stemming from construction and operating activities of the Blackwater Mining Project1

Over the LOM, in M$ and person-years, total and annual average




British Columbia

Total

Annual Average2

Overall construction activities would last 5 years (2 years initial phase followed by 2 expansion phases (15-18 months each)

Operating phase would last for 23 years

Value added (in M$)

13,234

-

Construction2

810

162

(over 5 years)

Operations

12,424

540

(over 23 years)

Note: Due to rounding, the sum of items may not add up to the total.
Source: Simulations of B.C. Stat based on data from Artemis, KPMG analysis

Table 2: Value-added and jobs stemming from the construction2 and operation of the Blackwater Project in British Columbia






British Columbia

Direct
Effects

Indirect
Effects

Induced
Effects

Total

In millions of dollars





Total value added during construction2

485

221

104

810

Value added per year during operations

419

100

21

540

In Full Time Equivalent



Jobs per year over 5 years of construction2

825

453

222

1,499

Jobs per year during operations

457

698

211

1,366

Note: Due to rounding, the sum of items may not add up to the total.
Source: Simulations of B.C. Stat based on data from Artemis; KPMG analysis

Table 3: Value-added and jobs stemming from the construction2 and operation of the Blackwater Project for the B.C. regions under study






Cariboo, Bulkily-Nechako and Fraser-Fort George Reginal Districts

Direct
Effects

Indirect
Effects

Induced
Effects

Total

In millions of dollars





Total value added during construction2

186

107

43

335

Value added per year during operations

419

38

7

464

In Full Time Equivalent



Jobs per year over 5 years of construction2

563

148

82

792

Jobs per year during operations

457

197

71

726

Source: Simulations of B.C. Stat based on data from Artemis; KPMG analysis

__________________________

1

Total impact includes direct, indirect and induced effects.

2

For construction, we assumed that the overall project, including initial phase and the 2 expansion phases, would take 60 months or 5 years, therefore, results may vary depending on the exact length of each phase. Also includes closure costs.

Table 4: Summary of total tax revenues stemming from construction and operating activities of the Blackwater Mining Project (direct, indirect and induced)

Over the LOM, total and annual average

Government Revenues (in M$)

Total

Annual Average

Overall construction phase would last 5 years (2 years initial phase follow by 2 expansion phases (15-18 months each)

Operating phase would last for 23 years

Municipal government revenue

73

-

    Construction

15

3.0

(over 5 years)

    Operations

58

 

2.5

(over 23 years)

Provincial government revenue

2,290

-

Construction

105

 

21

(over 5 years)

Operations

2,185

 

95

(over 23 years)

Federal government revenue

1,513

-

Construction

110

 

22

(over 5 years)

Operations

1,403

61

(over 23 years)

Note: Due to rounding, the sum of items may not add up to the total. Does not include direct property taxes paid by the mine.

Source: Simulations of B.C. Stat based on data from Artemis, KPMG analysis

Steven Dean, Chairman and CEO commented "The results of the Economic Impact Study confirms what the development of the Blackwater Gold Project will deliver as a new economic engine for central British Columbia and Canada. After over seven years of the Project being diligently and respectfully advanced through the environmental assessment process and reaching agreement with the Lhoosk'uz Dené and Ulkatcho First Nations the environmental assessment was approved in 2019.  Artemis continues to be committed to the responsible advancement of the Blackwater Gold project. The Blackwater Project has the potential to economically contribute at the local, provincial and federal levels for more than 25 years."

Next Steps

The Company is focused on advancing the Project forward with the following priorities:

  • Progression and achievement of final permitting required to commence construction;
  • The commencement of a pre-Construction grade control drilling program;
  • Negotiating and awarding of lump-sum fixed price EPC Contracts in respect of key components of construction of the Project;
  • Arrangement of requisite debt and equity financing to support development activities;
  • Planning for a diamond drilling exploration program to test resource extensions where the deposit remains open;
  • Continuing engagement and consultation with other Indigenous groups who may be impacted by the Project;
  • Continuing work on a definitive Feasibility Study based on the revised development approach with detailed engineering of the Project;

Corporate Update – Tier Graduation – Supplemental Disclosure

On October 30, 2020, the Company announced that it has been approved for graduation from Tier 2 to Tier 1 issuer status on the TSX Venture Exchange (the "TSXV") effective November 4, 2020. 

As required disclosure under TSXV Policies and the escrow agreement between the Company and Computershare Investor Services Inc. dated October 2, 2019, the below table outlines the remaining shares in escrow post graduation to Tier 1







Tier 1



Release Dates

Name

Shares

August 21, 2019

February 21, 2020

August 21, 2020

February 21, 2021

Steven Dean  - Cidel 

3,333,333

833,333

833,333

833,333

833,334

Steven Dean  - Sirocco

555,600

138,900

138,900

138,900

138,900

Ryan Beedie

11,111,111

2,777,778

2,777,778

2,777,778

2,777,777

Chris Batalha

555,500

138,875

138,875

138,875

138,875

Bob Atkinson

1,667,000

416,750

416,750

416,750

416,750

David Black 

555,500

138,875

138,875

138,875

138,875

Bill Armstrong

111,111

27,778

27,778

27,778

27,777

Total Insiders

17,889,155

4,472,289

4,472,289

4,472,289

4,472,288

.










Tier 2



Release Dates

Name

Shares

August 21, 2019

February 21, 2020

August 21, 2020

February 21, 2021

August 21, 2021

February 21, 2022

August 21, 2022

Steven Dean  - Cidel 

3,333,333

333,333

500,000

500,000

500,000

500,000

500,000

500,000

Steven Dean  - Sirocco

555,600

55,560

83,340

83,340

83,340

83,340

83,340

83,340

Ryan Beedie

11,111,111

1,111,111

1,666,667

1,666,667

1,666,667

1,666,667

1,666,667

1,666,665

Chris Batalha

555,500

55,550

83,325

83,325

83,325

83,325

83,325

83,325

Bob Atkinson

1,667,000

166,700

250,050

250,050

250,050

250,050

250,050

250,050

David Black 

555,500

55,550

83,325

83,325

83,325

83,325

83,325

83,325

Bill Armstrong

111,111

11,111

16,667

16,667

16,667

16,667

16,667

16,665

Total Insiders

17,889,155

1,788,915

2,683,374

2,683,374

2,683,374

2,683,374

2,683,374

2,683,370

Escrow Balance as of Sept 30, 2020

10,733,492





Tier 2

Name

Shares

# Shares in escrow  Sept 30 2020 

% Shares in escrow  - Sept 30 2020

Steven Dean  - Cidel 

3,333,333

2,000,000

60%

Steven Dean  - Sirocco

555,600

333,360

60%

Ryan Beedie

11,111,111

6,666,666

60%

Chris Batalha

555,500

333,300

60%

Bob Atkinson

1,667,000

1,000,200

60%

David Black 

555,500

333,300

60%

Bill Armstrong

111,111

66,666

60%

Total Insiders

17,889,155

10,733,492






Tier 1

Name

Shares

# Shares in escrow  Sept 30 2020 

Shares % escrow  - Sept 30 2020

Steven Dean  - Cidel 

3,333,333

833,334

25%

Steven Dean  - Sirocco

555,600

138,900

25%

Ryan Beedie

11,111,111

2,777,777

25%

Chris Batalha

555,500

138,875

25%

Bob Atkinson

1,667,000

416,750

25%

David Black 

555,500

138,875

25%

Bill Armstrong

111,111

27,777

25%

Total Insiders

17,889,155

4,472,288






Insider

Shares in Escrow Prior to Tier Graduation

Shares to be Released from Escrow within 10 Days of Bulletin

Shares in Escrow After Tier Graduation

Steven Dean

2,333,360

1,361,126

972,234

Ryan Beedie

6,666,666

3,888,889

2,777,777

Chris Batalha

333,300

194,425

138,875

Bob Atkinson

1,000,200

583,450

416,750

David Black 

333,300

194,425

138,875

Bill Armstrong

66,666

38,889

27,777

Total Insiders

10,733,492

6,261,204

4,472,288






60%

25%

35%

The remaining shares held in escrow are scheduled to be released on April 30, 2021.

ARTEMIS GOLD INC.
On behalf of the Board of Directors

"Steven Dean"
Chairman and Chief Executive Officer
+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. Forward-looking statements and information can generally be identified 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 and information are not historical facts, are made as of the date of this news release, and include, but are not limited to, statements regarding the Private Placement, the proceeds and use of proceeds from the Private Placement and the closing of the Private Placement. 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 Private Placement, risks related to the ability of the Company to settle documentation and close the Private Placement, and risks related to the Company's ability to use the proceeds of the Private Placement as anticipated. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, the assumptions that: (1) the Private Placement will be completed and proceeds used as expected by management; (2) the receipt of any necessary approvals and consents; and (3) that the Company will be able to close the Private Placement on the terms set out in this news release. 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 disclaim 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.

SOURCE Artemis Gold Inc.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2020/05/c1377.html

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