Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
Last week, Artemis Gold (TSXV: ARTG) closed its previously announced equity financing of C$175 million ($127m). The company issued approximately 38.9 million common shares at a price of C$4.50 per share.
The net proceeds of the offering will be used primarily to fund permitting and development costs for the Blackwater gold project. The 100%-owned property is located in central British Columbia, midway between Bella Coola and Prince George.
Using a conservative gold price of S$1,400/oz., Blackwater has proven and probable reserves of 334.3 million tonnes grading 0.75 g/t gold (8.0 million oz. gold) and 5.8 g/t silver (62.2 million oz. silver. Using a $2,000/oz. gold price, additional measured and indicated resources are 156 million tonnes grading 0.61 g/t gold and 11.7 million g/t silver.
Gold production will be about 320,000 oz./year in each of the first five years, rising to 440,000 oz. in years 11 to 17.
Artemis is planning a 22-year mine life with open pit methods and using gravity and conventional cyanidation methods for gold recovery. Life-of-mine capital costs are estimated at C$2.25 billion, beginning with C$645.2 million to be spent before production begins.
In addition to the bought deal offering mentioned earlier, certain management, insiders and shareholders, purchased, pursuant to a separate non-brokered offering, about 19.8 million common shares for additional gross proceeds of C$89 million.
