Toronto, ON: HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) announces it has closed the US$70 million debt financing package with Sprott Private Resource Lending (Collector), L.P. (“Sprott”) and Appian Natural Resources Fund (“Appian”). For further details on the financing, please see the press release dated May 3, 2018.
Proceeds from the financing will be used to complete construction of the Sugar Zone Project and to fund working capital in support of commercial production. Harte Gold has issued 14 million common share purchase warrants, exercisable at $0.49 to $0.51 per common share, for a period of five years from the date of issuance.
The loan agreement with Appian is a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the financing in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101, as the fair market value of the transaction will not exceed 25% of the Company’s market capitalization calculated in accordance with MI 61-101.