Wheaton offers $141 million silver stream to Artemis Gold as additional funding for Blackwater project
(Kitco News) - Artemis Gold (TSX-V: ARTG) said today it has received a silver stream offer to enter into a definitive precious metals purchase agreement with Wheaton Precious Metals, in respect to the company's Blackwater gold project in British Columbia.
Under the terms of the silver stream agreement, Wheaton will purchase 50% of the silver production from the mineral reserves of Blackwater until approximately 18 million ounces of silver have been delivered, after which the stream reduces to 33% of the silver production for the life of mine.
The company added that Wheaton will make an up-front deposit payment in cash of approximately US$141 million, payable in tranches during the major works construction of the project, subject to certain conditions.
In addition, Wheaton will make ongoing payments equal to 18% of the spot silver prices until the up-front deposit payment is reduced to zero, and 22% of the spot silver prices thereafter.
The letter of offer has been submitted to New Gold as required under the terms of an agreement related to the purchase of Blackwater dated August 21, 2020, which serves to formally trigger a Right of First Refusal mechanism under that agreement, the company noted.
According to the company's statement, in the event the ROFR Offer is not exercised by New Gold, Artemis and Wheaton will be free to execute the silver stream agreement within 120 days.
The company pointed out that the proceeds from the silver stream agreement will be used by the company to fund the advancement of the development and construction of the Blackwater project.
By Vladimir BasovFor Kitco News
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