Artemis Gold (TSXV: ARTG) has secured significant funding for its Blackwater Gold Project in British Columbia. The company this morning indicated it has secured up to $385 million in project debt financing.
The debt financing comes from Macquarie Bank and National Bank of Canada, whom jointly have provided a commitment letter and term sheet for a $360 million project loan facility. Capitalized interest related to the funding adds another $25 million to the figure, while the company has also received a $40 million cost overrun facility.
Funding is being provided at 4.5% interest plus the Canadian Dealer Offered Rate. That rate will fall to 4.0% plus the offered rate once the project is completed. Funds are to be repaid quarterly over a six year period, with reduced payments already marked for a period wherein the company intends to undergo an expansion of the project.
The credit agreement is expected to close in the second quarter of 2022.
The development follows Artemis selling a silver stream on the Blackwater project to Wheaton Precious Metals (TSX: WPM) back in December 2021. The stream was acquired for US$141 million, providing further funds to Artemis for the development of the Blackwater project.
The early works program related to the development of the project is slated to begin this spring, with the site to be prepared in advance of major works activities.
Artemis Gold last traded at $6.30 on the TSX Venture.
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