Toronto – December 14, 2016 – HARTE GOLD CORP. (“Harte Gold”) (TSX: HRT / OTC: HRTFF / Frankfurt: H40) is pleased to announce the closing of the $25 million financing previously announced in its news release dated November 24, 2016. The financing will facilitate the acceleration of exploration and development work at Harte Gold’s 100% owned Sugar Zone property located in White River, Ontario.
The financing consists of a $15 million bought deal offering of 38,461,538 flow-through common shares priced at $0.39 per flow-through common share (the “Flow-Through Offering”) with Cantor Fitzgerald Canada Corporation and a concurrent $10 million private placement financing of 33,333,333 common shares priced at $0.30 per common share (the “Private Placement”) with Appian Natural Resources Fund (“Appian”) through its wholly owned subsidiary, for aggregate gross proceeds of $25 million at a blended average price of $0.35 per common share. On closing, Appian will hold a 16.8% interest in Harte Gold.
Finder’s fees payable under the private placements consist of a cash payment equal to 3% of cash raised and broker warrants equal to 3% of the number of flow-through common shares and common shares issued pursuant to the private placements.
The 1,153,846 broker warrants issued pursuant to the Flow-Through Offering are exercisable at $0.49 for a period of twenty-four (24) months from closing and the 1,000,000 broker warrants issued pursuant to the Private Placement are exercisable at $0.375 for a period of twenty-four (24) months from closing.
Accelerating Exploration and Development of the Sugar Zone
Net proceeds received from the Flow-Through Offering and Private Placement will be used to accelerate exploration and development of the Sugar Zone property. Harte Gold and Appian have agreed to a twenty-four (24) month budget to fund exploration drilling, infill and resource definition drilling, large scale regional exploration, continued underground development and working capital.
About Harte Gold Corp.
Harte Gold Corp. is focused on the exploration and development of its 100% owned Sugar Zone property where it has permitted a 70,000 tonne Advanced Exploration Bulk Sample for the Sugar Zone Deposit. The Sugar Zone property is located 80 kilometres east of the Hemlo Gold Camp. The Preliminary Economic Assessment dated July 12, 2012, contains an Indicated Resource of 980,900 tonnes, grading 10.13 g/t for 319,280 ounces of contained gold (uncapped) and an Inferred Resource of 580,500 tonnes, grading 8.36 g/t Au for 155,960 ounces of contained gold (uncapped).
The mineral resource was prepared in compliance with NI 43-101 guidelines. George A. Flach P. Geo, Vice President Exploration, is the Qualified Person for Harte Gold and has prepared, supervised the preparation, or approved the scientific and technical disclosure in this news release. Harte Gold also holds the Stoughton-Abitibi property located on the Destor-Porcupine Fault Zone adjacent and on strike of the Holloway Gold Mine.
About Appian Natural Resources Fund
Appian Natural Resources Fund is a metals and mining private equity fund providing long-term capital to both private and public mining companies. The advisor to Appian Natural Resources Fund, Appian Capital Advisory LLP (the “Advisor”), is headquartered in London, with an international network in key mining cities. The Advisor has a senior management team that is a combination of professionals from major mining companies, private equity firms and investment banks, bringing together over 150 years of combined mining experience.
In aggregate, they have managed in excess of 60 mines through to production and concluded over $200 billion worth of mining sector transactions specializing in strategic growth advisory for small to medium sized projects. With a successful track record of value creation across the full mining life cycle, the Advisor’s strong operating and corporate skills are available to support management teams to optimise assets and ramp up operations that deliver value and generate attractive returns for all investors.
Common Shares Outstanding: 426,487,902
For further information, please contact:
Stephen G. Roman
President and CEO
Email: [email protected]
Investor Relations Consultant
E-mail: [email protected]