Harte Gold Corp. (TSX: HRT) (OTC: HRTFF) (Frankfurt: H4O) is pleased to announce it has closed the previously announced private placement subscription by New Gold Inc. (TSX:NGD) in common shares of the Company.
In connection with the closing of the Strategic Investment, 154,940,153 Common Shares were issued to New Gold at a price of $0.16 per Common Share, for gross proceeds of $24,790,424.
The Company plans to use the proceeds primarily toward accelerated mine development, planned expansion and the scheduled March 31, 2021 US$3.3 million debt payment to BNP Paribas.
In exchange for the waiver of certain rights in connection with the Strategic Investment, the Company issued to ANR Investments B.V. a deferred participation warrant that will allow Appian to acquire up to 55,802,812 Common Shares at $0.18 per share for a period of 15 months following March 24, 2021. The Appian Deferred Participation Warrant is not exercisable by Appian, subject to certain exceptions until March 24, 2022. New Gold has also been granted a warrant which provides New Gold with the right, subject to Appian exercising the Appian Deferred Participation Warrant, to acquire up to 8,314,619 additional Common Shares at $0.18 per Common Share in order to maintain its pro rata interest in the Company.
The grant of the Appian Deferred Participation Warrant described herein is a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with such grant in reliance on sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101, as the fair market value of such grant does not exceed 25% of the Company’s market capitalization calculated in accordance with MI 61-101.
About Harte Gold Corp.:
Harte Gold holds a 100% interest in the Sugar Zone mine located in White River, Canada. The Sugar Zone Mine entered commercial production in 2019. Production guidance is 60,000 to 65,000 oz Au for 2021. The Company has further potential through exploration at the Sugar Zone Property, which encompasses 81,287 hectares covering a significant greenstone belt. Harte Gold trades on the TSX, on the OTC andNew Gold, on the Frankfurt Exchange.
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