New Gold Inc announced the sale of its Blackwater Project to Artemis Gold for $190 million today (Tuesday).
The project consists of the construction, operation, and closure of an open-pit gold and silver mine located 110 km southwest of Vanderhoof.
In a news release, Artemis Gold shared the signing of an Asset Purchase Agreement, with New Gold Inc. to acquire the Blackwater Gold Project in North-Central British Columbia.
New Gold Inc is retaining exposure by keeping an eight percent gold stream and equity stake in the company.
The transaction is expected to close in the third quarter of this year.
As part of the deal, New Gold will acquire 9.9 percent of Artemis’ shares.
The Blackwater Gold Project is worth about $1.8 billion and the project got both Federal and Provincial Environmental Assessment approvals.
It is estimated to produce approximately 60,000 tonnes per day of gold and silver ore, for a mine life of 17 years.
Artemis Gold Inc says in the coming months they will be focusing on completing financing needed to get the deal done.
In addition, the company will work towards establishing relationships, and continuing engagement with First Nation communities affected by the project.
Over the next three months, Artemis will also complete an updated pre-feasibility study, the company said.
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