Artemis raises $114m to fund Blackwater purchase

Prince George, British Columbia. Credit: Wikipedia

In connection with its proposed C$190 million acquisition of the Blackwater project from New Gold (TSX: NGD), Artemis Gold (TSXV:ARTG) is undertaking a bought deal private placement of 31.5 million subscription receipts priced at C$2.70 each, as well as a non-brokered offering of receipts at the same terms to insiders, to raise gross proceeds of C$155 million.

Artemis will use the proceeds to fund the initial payment of C$140 million for the Blackwater project, with the balance for general corporate purposes. Upon completing this payment, each subscription receipt will be exchanged for one common share of Artemis.

The Blackwater project, located 160 km southwest of Prince George, BC, is a proposed open-pit gold and silver mine with a resource estimate of 1.4 million ounces gold and 8.7 million ounces silver

A second installment of C$50 million will be paid to New Gold 12 months following closing of the Blackwater transaction. As part of the deal, New Gold will acquire as much as 9.9% of Artemis' common shares for C$20 million at the close.

The Blackwater project, located 160 km southwest of Prince George, BC, is a proposed open-pit gold and silver mine with a resource estimate of 1.4 million ounces gold and 8.7 million ounces silver in the measured and indicated category.

Shares in Artemis Gold climbed 1.3% by midday Friday. The Vancouver-based miner has a market capitalization of C$106.6 million.