08:06 AM EDT, 09/15/2025 (MT Newswires) -- Artemis Gold ( ARGTF ) said Monday it will invest $100 million to $110 million to expand phase-one processing capacity at its Blackwater mine in British Columbia.

The upgrade will increase the phase-one processing plant's nameplate capacity by 33% to 8 million tonnes per year from 6 million tonnes, the company said.

"We expect [the project] to de-risk and enhance future free cash flows that are aimed at funding a larger phase 2 expansion," chief executive officer Dale Andres said.

"The project will be funded out of operating cash flows, and the payback period is expected to be less than six months," Andres added.

The company expects the phase-two expansion to increase production to over 500,000 gold equivalent ounces per year. An investment decision on phase two is expected in the fourth quarter.

Artemis said it has placed orders with Metso for both an 18 MW semi-autogenous grinding mill and an 18MW ball mill as part of the planned phase-two expansion.

Artemis' share price gained 1.3% Friday to a near 52-week high of $32.41 on the TSXV.