Following competitive bidding, Artemis Gold (TSXW: ARTG) entered into binding agreements with Finning (Canada), a division of Finning International (TSX: FTT), to provide primary and secondary mining fleets for the Blackwater Gold project in British Columbia.
Through an agreement with Caterpillar, Artemis has the option to order Caterpillar zero-emission trucks, which are currently under development, for deliveries starting in 2029. The park transition marks a major milestone for the project and will reduce the carbon footprint of the Blackwater facility.
The project will be provided with clean electricity through a planned 135 km 230 kV transmission line that will be connected to the BC Hydro network.
In accordance with the supply agreements, Finning has locked in equipment prices for the main fleet through December 31, 2024, subject to minor index and currency adjustments. Finning also agreed on delivery dates for the main and auxiliary fleets to support the development of the Blackwater mine. The supply contracts provide for the supply of equipment as well as the supply of spare parts and labor, the latter in support of the assurance of availability of equipment supplied by Finning.
The Company also simultaneously completed a L/C-approved equipment lease commitment with Caterpillar Financial Services relating to the primary and secondary mining fleet, as well as an agreement with Caterpillar (NISE: CAT) to supply a future emissions vehicle fleet.
The approved equipment lease agreement with Cat Financial provides equipment financing of up to $140 million ($109.3 million) on terms consistent with the assumptions outlined in the company’s 2021 technical feasibility report dated September 10, 2021. The rented equipment remains. in accordance with the usual precedent, including the completion of work on the Master Lease and supporting documents.
“The implementation of these agreements gives Artemis confidence in the cost of equipment and access to equipment for Blackwater’s planned mining and construction activities,” CEO Steven Dean said in a media statement. “Equally important, the partnership with Caterpillar paves the way for the project to decarbonize the Blackwater fleet.”
“With BC Hydro’s access to clean energy, switching to an electrified fleet as early as 2029 offers Artemis a path to significantly reduce the project’s carbon footprint.” He added that this is in line with Artemis ESG’s goals of responsible development of the Blackwater Gold project, identifying innovative ways to reduce our environmental impact while providing generational opportunities in the communities in which we operate.
The company recently awarded a $312 million ($243.5 million) engineering, supply, construction and commissioning contract to Sedgman Canada for the Blackwater processing plant and associated infrastructure.