Artemis Gold Acquires Vista Gold in US$427 Million Deal

Artemis Gold (TSXV:ARTG,OTCQX:ARGTF) has agreed to acquire Vista Gold Corp (NYSE:VGZ) in a US$427 million all-stock transaction that secures full ownership of the Mt Todd gold project in Australia’s Northern Territory.

Under the definitive arrangement agreement, Vista Gold shareholders will receive 0.0966 Artemis common shares for each Vista share held. Artemis Gold already holds a 4.95 percent stake in Vista Gold.

---

Upon completion, existing Artemis shareholders will own approximately 95 percent of the combined entity, while Vista shareholders will hold the remaining 5 percent.

"This transaction presents an attractive opportunity to add a high-quality development asset that, when combined with our ongoing and future growth opportunities for Blackwater, provides a pathway to achieving one million ounces of gold production per year," Artemis Gold CEO Dale Andres said in the announcement.

Vista Gold’s primary asset, Mt Todd, is located 290 kilometers southeast of Darwin on lands owned by the Jawoyn Association Aboriginal Corporation, which has an existing agreement permitting development. Prior mining operations at the site ceased back in 2001.

The feasibility-stage project hosts 9.1 million ounces of measured and indicated mineral resources, plus 1.4 million ounces of inferred resources. The site already holds key regulatory approvals to construct and operate a processing facility with a capacity of 50,000 tons per day.

Mt Todd is also surrounded by more than 1,300 square kilometers of contiguous exploration licenses containing known occurrences of gold, copper, tin, and tungsten along a 25-kilometer trend that remains largely unexplored by modern methods.

Artemis emphasized that the acquisition will not disrupt the sequencing or funding of its focus on the ongoing Blackwater Phase 1A and EP2 expansion projects. The company does not anticipate development or construction spending at Mt Todd until the Blackwater EP2 expansion reaches full production, which is targeted for mid-2028.

Artemis expects subsequent cash flow generated from Blackwater to comfortably fund a potential development decision at Mt Todd.

The acquisition follows a record second quarter for Artemis Gold, which produced 74,063 ounces of gold at Blackwater, a 20 percent increase from the prior quarter.

The company remains on track to meet its full-year guidance of up to 290,000 ounces as it prepares to commission the Phase 1A expansion by year-end.

Following the news, shares of Artemis rose 5.29 percent on Tuesday (September 22) to trade for C$41.59.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.