Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Artemis Gold (TSXV: ARTG) has secured a project debt financing that will fund a significant part of its Blackwater project in central British Columbia.
This is done through a credit-approved commitment letter and term sheet from Macquarie Bank and National Bank of Canada to jointly underwrite a C$360 million ($280m) project loan facility (PLF).
The project facility also provides for up to C$25 million in capitalized interest and a C$40 million standby cost overrun facility (COF). The standby COF is an addition to the terms previously announced in April 2021, representing a further enhancement of these financing facilities to de-risk development in the current economic environment.
“The committed underwriting of the PLF by two renowned global banks is another important step towards de-risking the development of Blackwater. This underlines the robust economics and debt carrying capacity of the project, further evidenced by the addition of the standby cost overrun facility to the original PLF proposal,” CEO Steven Dean said in a press release.
The company added that it remains confident in the C$645 million initial capital cost estimate outlined in the 2021 feasibility study. According to the technical report, Blackwater is project with a net present value of C$2.15 billion (after tax) that will pay for itself in the first 2.3 years of production.
In the first five years of operation, Blackwater will produce 321,000 oz. of gold annually at an all-in sustaining cost of $576 per ounce. Over its 22-year mine life, production will average to 351,000 oz. of gold with an AISC of $672 per ounce.
Construction of the project was approved in the summer of 2021, nearly a year after Artemis purchased the property from New Gold (TSX: NGD) for C$190 million.
(This article first appeared in the Canadian Mining Journal)
