Harte Gold Announces Amendment to Forbearance Agreement with BNP
September 30, 2021
Toronto – September 30, 2021 – HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) announces an amendment of its Forbearance Agreement with BNP Paribas (“BNPP”).
The Forbearance Agreement, previously announced on July 30, 2021, has been amended pursuant to an Amending Agreement dated September 30, 2021, which extends the date to which BNPP has agreed, subject to certain terms and conditions, to refrain from enforcing its rights and remedies under the BNP Debt Facilities from September 30 to October 15, 2021.
The Amending Agreement provides for the continuation of Harte’s Strategic Review Process, initiated in June 2021. However, there can be no assurance that the strategic review process will result in any transaction, what the value of any transaction might be, whether BNPP will continue to forbear from exercising its rights and remedies on expiry of the Agreement or what the terms or timing of such a transaction or such continued forbearance might be.
In order to ensure sufficient liquidity to support the Strategic Review Process, the Company has continued to defer the implementation of various mitigation measures that were aimed at addressing the production variance from plan experienced to date in 2021. The Company has also reduced certain sustaining and expansion capital expenditures, which may adversely impact production over the next six months. At this time, the Company is unable to provide updated 2021 production guidance as the Strategic Review 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 updates when further disclosure is required or otherwise appropriate.