Artemis Gold: Navigating Wildfires to Stay On Track at Blackwater Mine

Artemis Gold Inc. (TSX-V: ARTG) has provided a comprehensive update on the progress at its Blackwater Mine in central British Columbia. Despite facing challenges from wildfires, the company remains committed to its timeline and budget, with first gold pour targeted for late Q4 2024.

The wildfires have posed significant challenges to the construction process, resulting in approximately one and a half months of lost productive construction days during the most critical months. However, Artemis Gold's management has been diligently working on cost savings and schedule acceleration initiatives to mitigate the impact of these delays. The company has also secured additional funding to address the financial implications of the wildfires.

Artemis Gold has updated its initial capital guidance to reflect the impact of wildfires, with the new range of $780 million to $800 million, an increase of approximately 7% from the previous guidance of $730 million to $750 million. This increase is justified by the additional fixed overhead costs and schedule acceleration initiatives implemented to offset the delays caused by the wildfires.

To address the financial impact of the wildfires, Artemis Gold has executed an agreement with National Bank of Canada for an additional stand-by debt funding of up to $65 million, plus up to $10 million in capitalized interest and fees. This funding is in addition to the company's existing Project Loan Facility of $360 million and a cost overrun facility of $40 million. The stand-by facility is repayable within 12 months and has the same commercial terms as the cost overrun facility.

Artemis Gold's financial performance and guidance compare favorably to its peers in the mining sector. The company's focus on cost discipline and deep project development experience has enabled it to limit the impact of wildfires on its initial capital guidance to a 7% increase. This demonstrates the company's ability to navigate challenges and maintain its financial integrity.

In conclusion, Artemis Gold has successfully navigated the challenges posed by wildfires at the Blackwater Mine, maintaining its timeline and budget while securing additional funding to address the financial impact. The company's financial performance and guidance remain strong, positioning it well in the mining sector. As the project progresses, investors can expect Artemis Gold to continue delivering on its commitments and creating shareholder value.