Harte Gold Obtains Deferral of Senior Credit Facility and Hedge Payments and Waiver of Financial Covenants
June 30, 2021
Toronto – June 30, 2021 – HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) announced today that BNP Paribas (“BNPP”) has deferred various payments and waived compliance with the financial covenants under its senior credit facility agreement (the “Credit Facility”).
- deferred to July 30, 2021, the due date of (i) the principal and interest payments under the Credit Facility originally scheduled for June 30, 2021, and (ii) the settlement payment under the hedge program originally scheduled for July 2, 2021; and
- waived, until and including July 30, 2021, the Company’s compliance with the financial covenants under the Credit Facility.
This deferral and waiver will facilitate the Company’s strategic review process, initially announced by press release dated May 13, 2021, and subsequently updated by press release dated June 8, 2021, which is continuing. However, there can be no assurance that the strategic review process will result in any transaction, whether BNPP will provide additional deferrals, waivers or amendments or what the terms or timing of such a transaction or additional deferrals, waivers or amendments might be.
To support the continuation of the strategic review process, the Company is actively managing its liquidity and capital resources. Prioritizing cash preservation to allow for a robust process has included reducing certain capital expenditures which is anticipated to have an impact on production over the next 6 to 9 months. At this time, the Company is unable to provide updated guidance as the process continues to evolve but believes its revised 2021 guidance, issued on May 13, 2021, is at risk and may not be achieved.
The Company will provide further updates when appropriate.
Annual and Special Meeting of Shareholders (the “AGM”):
The Company reminds registered shareholders and duly appointed proxyholders that the AGM will be held later today at 10:00 am (Eastern Time). In light of the ongoing strategic review process, management will not be making a presentation but will endeavour to respond to questions to the extent possible in the circumstances.
The AGM will be held in virtual format only, which will be conducted by live audio webcast at https://virtual-meetings.tsxtrust.com/en/1119/. Further information can be found on the Company’s website at www.hartegold.com.