Artemis Gold gets commitments for C$360 million project loan facility

By Marisa Wong

Los Angeles, Feb. 24 – Artemis Gold Inc. announced it executed a credit-approved commitment letter and term sheet from Macquarie Bank Ltd. and National Bank of Canada to jointly underwrite a C$360 million project loan facility.

The project loan facility will be used to fund a significant component of the estimated construction costs of the company’s Blackwater Gold project in central British Columbia.

The facility also provides for up to C$25 million of capitalized interest and a C$40 million standby cost overrun facility.

The standby cost overrun facility is an addition to the terms previously announced on April 9, 2021 and represents a further enhancement of these financing facilities to de-risk development in the current economic environment, the company said in a press release.

Principal and capitalized interest will be repayable in quarterly installments over six years, with reduced repayments during the period when the company expects to undertake its expansion of the project from phase 1 to phase 2. The loan facility can be prepaid at anytime without penalty.

Interest will be CDOR plus a margin of 450 basis points pre-project completion, stepping down to 400 bps post-completion. Any amounts drawn on the standby facility will carry the above pricing plus an additional 200 bps.

Closing of the loan facility will be subject to completion of final due diligence, definitive documentation and other typical conditions for a financing of this nature. The company said it is targeting the execution of a definitive credit agreement in the second quarter of 2022.

The gold development company is based in Vancouver, B.C.

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