Harte Gold Announces $24.8 Million Strategic Investment by New Gold and Indicative Proposal to Reschedule Senior Debt Payments
March 18, 2021
Toronto – March 18, 2021 - Harte Gold Corp. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) is pleased to announce that New Gold Inc. (“New Gold”) (TSX:NGD) has agreed to make a strategic investment in Harte Gold. The investment, by way of a private placement subscription by New Gold of 154,940,153 common shares of the Company (“Common Shares”) at a price of $0.16 per share, will result in Harte Gold raising total gross proceeds of approximately $24.8 million and provide New Gold with a 14.9% interest in the Company’s pro forma issued and outstanding Common Shares (the “Strategic Investment”). The Company is also pleased to announce that it has received a non-binding indicative proposal from BNP Paribas (“BNP”) to re-schedule approximately $50 million of the scheduled amortization payments under the Company’s senior debt facility with BNP (the “Debt Refinancing Proposal”), which would provide Harte Gold with significantly more financial flexibility over the next two years. The Company anticipates the closing of the Strategic Investment to occur on or about March 24, 2021 and to negotiate documentation with BNP in early Q2 2021.