Toronto, ON: HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) is pleased to announce that it has entered into a binding term sheet with Appian Capital Advisory LLP (“Appian”) for up to US$30 million (~C$40,884,000) in financing (the “Proposed Transaction”), subject to receipt of approval from the Toronto Stock Exchange (the “Exchange”). Proceeds of the financing will be used to facilitate a restart of the Sugar Zone mining operation in July 2020.
The Proposed Transaction is comprised of:
(a) a private placement of 9,500,000 Series B special shares (the “Special Shares”) of the Company at a price of US$1.00 per Special Share (the “Offering Price”) for aggregate gross proceeds of US$9,500,000 (the “Private Placement”);
(b) a US$18.5 million non-revolving credit facility (the “Credit Facility”); and
(c) a grant of a 0.5% net smelter return royalty in consideration of US$2 million (the “0.5% NSR”).