Artemis will use the proceeds to fund the initial payment of C$140 million for the Blackwater project, with the balance for general corporate purposes. Upon completing this payment, each subscription receipt will be exchanged for one common share of Artemis.

A second installment of C$50 million will be paid to New Gold 12 months following closing of the Blackwater transaction. As part of the deal, New Gold will acquire as much as 9.9% of Artemis’ common shares for C$20 million at the close.

The Blackwater project, located 160 km southwest of Prince George, BC, is a proposed open-pit gold and silver mine with a resource estimate of 1.4 million ounces gold and 8.7 million ounces silver in the measured and indicated category.

Shares in Artemis Gold climbed 1.3% by midday Friday. The Vancouver-based miner has a market capitalization of C$106.6 million.