Toronto, ON: HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) is pleased to announce it has closed the previously announced bought deal financing (the “Offering”) and has restarted its regional exploration program, which includes drilling high priority targets at the north end of the Sugar Zone Property.
Financing Closed Fully Subscribed
Pursuant to the Offering, the Company issued an aggregate of 23,000,000 common shares that qualify as “flow-through shares” (the “Flow-Through Shares”) within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”), including 3,000,000 Flow-Through Shares issued upon the exercise in full by the Underwriter (as defined below) of the underwriter’s option, at a price of $0.30 per Flow-Through Share for aggregate gross proceeds to the Company of $6,900,000.
Echelon Wealth Partners Inc. (the “Underwriter”) acted as sole underwriter and bookrunner on the Offering. In consideration for their services, the Underwriter received a cash commission 5% of the gross proceeds of the Offering, and broker warrants (“Broker Warrants”) equal to 5% of the number of Flow-Through Shares sold in the Offering, provided that such commission was reduced to 3% in respect of Flow-Through Shares sold to purchasers on the “President’s List”. The Broker Warrants are exercisable for one common share of the Company at an exercise price of $0.30 per share until April 2, 2021.