Toronto-listed Artemis Gold on Monday announced that it would raise up to C$156-million to make its final cash payment for the Blackwater gold project, which it bought from New Gold, and to fund permitting and development costs.
Artemis entered into an agreement with a syndicate of underwriters, co-led by National Bank Financial and BMO Capital Markets, under which the underwriters have agreed to buy on a bought deal basis 16.39-million shares at C$6.10 each for gross proceeds of C$100-million.
The company also announced a nonbrokered private placement, whereby up to 9.2-million common shares will be issued to insiders and to a president’s list, at the offering price, for gross proceeds of up to C$56.12-million.
Artemis in June last year announced the acquisition of the Blackwater project, in British Columbia, for C$190-million.
Artemis plans to develop the Blackwater project into a 250 000 oz/y operation, which will cost less than C$600-million, and then finance two subsequent expansion stages from future operating cashflows.