Herbal Dispatch Provides Update on Gold Royalty Interest in Artemis Gold's Blackwater Mine
Herbal Dispatch is formally weighing whether to hold or monetize its non-core Blackwater gold royalty to maximize shareholder value.
Rhea-AI Summary
Herbal Dispatch (LUFFF) is reviewing strategic options for a legacy gold royalty on Artemis Gold's Blackwater mine claims in British Columbia.
The company holds a 1.5% net smelter return royalty on production, if any, from eight Buck mineral claims totaling about 3,755.5 hectares, adjacent to the Blackwater Mine Area and Ultimate Pit. Artemis Gold may buy two-thirds of this royalty for C$2,000,000, which would reduce Herbal Dispatch's interest to a 0.5% NSR. The royalty is recorded at a carrying value of $nil and currently generates no cash flow. Herbal Dispatch is evaluating whether to retain the royalty for potential long-term upside or monetize it to support its core cannabis commerce business.
Positive
- Legacy Buck claims royalty provides up to 1.5% NSR on potential future production
- Artemis Gold option to buy two-thirds of the royalty for C$2,000,000
- Royalty is passive with no operating, funding, or exploration obligations for Herbal Dispatch
- Formal review of strategic alternatives aims to maximize shareholder return from the royalty
Negative
- Royalty currently has $nil carrying value on financial statements
- Herbal Dispatch receives no current cash flow from the Blackwater royalty
- Artemis Gold is under no obligation to develop or mine the specific Buck claims
AI-generated analysis. How Rhea-AI works. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - September 9, 2026) - Herbal Dispatch Inc. (CSE: HERB) (OTCQB: LUFFF) (FSE: HA9) ("Herbal Dispatch" or the "Company"), a cannabis commerce and international distribution platform, today provided an update on a gold royalty interest held by the Company on mineral claims forming part of the Blackwater mine in central British Columbia.
OVERVIEW OF THE ROYALTY
Herbal Dispatch holds a royalty interest (the "Royalty") applicable to eight (8) mineral claims located within the mineral tenure of the Blackwater mine project (the "Property"), located approximately 112 km southwest of Vanderhoof, BC. The Property is owned and operated by Artemis Gold Inc. ("Artemis Gold"), a Canadian gold producer listed on the TSX Venture Exchange. Blackwater is one of the largest new gold mines to reach commercial production in Canada in recent years, and Artemis Gold has publicly disclosed that it continues to actively advance expansion plans for the operation, including a mill throughput expansion intended to increase future gold and silver production.
The Buck claims, Buck 1 through Buck 8, together cover approximately 3,755.5 hectares (approximately 9,280 acres), and form one contiguous block located immediately adjacent to (west of) the claims bordering the Blackwater Mine Area and Ultimate Pit.
The Royalty entitles the Company to a
HISTORY OF THE ROYALTY
The Royalty is a legacy interest that predates Herbal Dispatch's entry into the cannabis sector. The Company's corporate predecessor, Paget Minerals Corp. ("Paget"), was a British Columbia-based mineral exploration company that held mineral claims in the Blackwater district.
Paget subsequently completed a reverse takeover transaction in 2018, which was later renamed Herbal Dispatch Inc. in January 2023. The Royalty was carried forward through these corporate transitions and remains held by the Company today as a non-core, legacy asset separate from Herbal Dispatch's core cannabis operations. Currently, this asset is recorded at a carrying value of $nil in the Company's financial statements.
ARTEMIS GOLD'S CONTINUED EXPANSION AT BLACKWATER
Artemis Gold has continued to actively expand the Blackwater mine following the achievement of commercial production. Publicly disclosed initiatives include a Phase 2 mill expansion intended to increase processing throughput and annual gold production, together with continued exploration and resource definition work across the broader Blackwater land package. Continued development of the Property by Artemis Gold may enhance the long-term value of the Royalty.
STRATEGIC ALTERNATIVES UNDER REVIEW
The Royalty is not part of Herbal Dispatch's core cannabis commerce business, and the Company holds no operating interest in, and receives no current cash flow from the Property.
The Company views the Royalty as a call option on Artemis Gold's continued de-risking and expansion of Blackwater, with the potential to appreciate in value as the mine ramps toward full production. At the same time, as Herbal Dispatch's business increasingly centres on scaling its core, asset-light cannabis commerce platform, the Board and management are undertaking a formal review of strategic alternatives with respect to the Royalty. These alternatives include, but are not limited to: (i) continuing to hold the Royalty for potential long-term appreciation as Blackwater ramps up production; (ii) a full or partial monetization or sale of the Royalty to a royalty and streaming company or other third party; or (iii) other transactions the Board determines to be in the best interests of the Company and its shareholders.
The Company has undertaken a strategic review of these options in order to maximize shareholder return. There can be no assurance that this review will result in any transaction. The Company does not intend to disclose further developments regarding this review until it is determined that further disclosure is necessary or appropriate.
MANAGEMENT COMMENTARY
"This Royalty is a piece of our corporate history from before Herbal Dispatch came to be, but it's a real asset, and we want our shareholders to understand what we hold and why it matters," said Philip Campbell, CEO of Herbal Dispatch. "Artemis Gold has done an excellent job bringing Blackwater into production and continuing to invest in its expansion, and that work only strengthens the underlying value of our interest. Our focus now is making sure shareholders get full value from this asset, whether that comes from holding it through Blackwater's ramp-up or monetizing it to fund growth in our core cannabis business. We'll run a thorough process and keep the market updated as our review progresses."
ABOUT HERBAL DISPATCH INC.
Herbal Dispatch Inc. (CSE: HERB) is a technology-enabled cannabis commerce platform built for scalable global growth, operating proprietary brands, digital infrastructure, and international distribution within a disciplined, asset-light capital model. For more information, visit www.herbaldispatch.com.
For further information:
Philip Campbell, CEO and Director
Email: IR@herbaldispatch.com
Telephone: 1-833-432-2420
ABOUT ARTEMIS GOLD INC.
Artemis Gold Inc. (TSXV: ARTG) is a Canadian gold mining company that owns and operates the Blackwater mine, a gold-silver mine located near Vanderhoof, British Columbia.
CAUTIONARY NOTE REGARDING THIRD-PARTY INFORMATION
Information in this release concerning Artemis Gold and the Blackwater mine, including production status, expansion plans, and mine life, is based solely on information publicly disclosed by Artemis Gold and has not been independently verified by Herbal Dispatch. Herbal Dispatch does not have access to non-public information regarding the Property and disclaims any responsibility for the accuracy or completeness of Artemis Gold's public disclosure.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release, including statements or information containing terminology such as "anticipate", "believe", "intend", "expect", "estimate", "may", "could", "will", and similar expressions constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, that address activities, events, or developments that the Company or a third party expect or anticipate will or may occur in the future, including the Company's future growth, results of operations, performance, and business prospects and opportunities are forward-looking statements.
These forward-looking statements reflect the Company's current beliefs and are based on information currently available to the Company. These statements require the Company to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties.
Actual results and developments may differ materially from the anticipated results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond the Company's control. These risk factors are interdependent and the impact of any one risk or uncertainty on a particular forward-looking statement is not determinable. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected effects on the Company. These forward-looking statements are made as of the date of this news release. Except as required by applicable securities legislation, the Company assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.
THE CANADIAN SECURITIES EXCHANGE (THE "CSE") HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS NEWS RELEASE. NEITHER THE CSE NOR ITS MARKET REGULATOR (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CSE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.NEITHER THE CSE NOR ITS MARKET REGULATOR (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CSE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/313527
FAQ
What exactly does Herbal Dispatch's Blackwater royalty cover?
The royalty applies to eight Buck mineral claims, Buck 1 through Buck 8, covering approximately 3,755.5 hectares (about 9,280 acres). These claims form one contiguous block located immediately west of the claims bordering the Blackwater Mine Area and Ultimate Pit.
How is the royalty structured and what is Artemis Gold's purchase option?
Herbal Dispatch is entitled to a 1.5% net smelter return (NSR) royalty on production, if any, from the Buck claims under the Buck Option agreement. Artemis Gold holds an option to purchase two-thirds of this royalty for C$2,000,000 at any time, which would reduce Herbal Dispatch's interest to a 0.5% NSR.
Why is the royalty considered a non-core asset for Herbal Dispatch?
The Blackwater royalty originated from Herbal Dispatch's predecessor, Paget Minerals, before the company entered the cannabis sector. It is described as a non-core, legacy asset that is separate from Herbal Dispatch's core, asset-light cannabis commerce operations and is currently carried at $nil on the balance sheet.
What strategic alternatives is Herbal Dispatch considering for the royalty?
The company is formally reviewing options that include: (i) continuing to hold the royalty for potential long-term appreciation as Blackwater ramps up production; (ii) a full or partial monetization or sale of the royalty to a royalty and streaming company or other third party; or (iii) other transactions the board determines are in the best interests of the company and its shareholders.
Will Herbal Dispatch provide ongoing updates about the strategic review?
The company states that there can be no assurance the review will result in any transaction and that it does not intend to disclose further developments until it is determined that additional disclosure is necessary or appropriate.