By Adriano Marchese
Artemis Gold Inc. said Tuesday that it received an offer from Wheaton Precious Metals Corp. to purchase half of the silver production from its British Columbia project for an upfront payment of $141 million.
The company said the silver stream offer would be to acquire 50% of the silver production from the mineral deposits of the company's Blackwater Gold Project until about 18 million ounces of silver have been delivered.
After that, the stream would reduce to 33% of the silver production for the life of the mine.
The $141 million consideration would be paid in tranches during the major works construction of the project, and Wheaton would also make continued payments equal to about 18% of the spot silver prices until the up-front deposit payment is reduced to zero, after which it will rise to 22%.
Artemis Gold said it would use the proceeds of the deal to advance the development and construction of the project.
"This silver stream provides the capital along with our cash position to complement the project debt financing supporting the overall capital required for the development of our Blackwater project," Chairman and Chief Executive Steven Dean said.
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(END) Dow Jones Newswires