News

Harte Gold Announces Extension of Stay Period and Approval of Increased DIP Financing

December 17, 2021

Toronto – December 17, 2021 – As previously announced on December 7, 2021, HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) was granted creditor protection pursuant to an order (the “Initial Order”) granted by the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended (the “CCAA”). Pursuant to the Initial Order, the Company obtained protection from its creditors for an initial period of ten (10) days (the “Stay Period”) and FTI Consulting Canada Inc. was appointed as monitor of the Company (in such capacity, the “Monitor”).

On December 7, 2021, the Company also announced that it would seek, at a hearing scheduled for December 16, 2021, the Court’s approval of (i) an increase in the DIP Financing Facility that was approved by the Court in the Initial Order to $10.8 million; and (ii) a sale and investment solicitation process ("SISP") and authority to use the Subscription Agreement between Harte Gold and  1000025833 Ontario Inc. (the “Investor”), a wholly-owned indirect subsidiary of Silver Lake Resources Limited (“Silver Lake”) (ASX: SLR) as a “stalking horse” in the SISP. On December 15, 2021, following negotiations that occurred subsequent to the granting of the Initial Order, Harte Gold executed an amended Subscription Agreement with the Investor (the “Amended Subscription Agreement”), which now includes the retention of additional contracts, including all existing royalty and offtake agreements.

As a result of the delay in the filing of materials with the Court due to the ongoing negotiations in respect of the Amended Subscription Agreement, the Court adjourned the hearing, notwithstanding the Company’s motions were unopposed, to ensure that the Court had sufficient time to more fully consider the matter. The hearing will now proceed on December 20, 2021.  In the meantime, the Court has issued an order extending the Stay Period until December 21, 2021 and increasing the amount authorized for borrowing under the DIP Financing Agreement from $0.4 million to $2.5 million.

Trading in Securities of Harte Gold

On December 7, 2021, the Toronto Stock Exchange (“TSX”) suspended trading of Harte Gold’s common shares and put the Company under delisting review under its expedited review process. On December 15, 2021, the TSX advised the Company that the securities of the Company would be delisted effective January 17, 2022.

Additional Information

Further updates will be provided as appropriate.  A copy of the Initial Order and the ARIO and all materials related thereto, as well as any other information regarding the CCAA proceedings, are available on the Monitor’s website at http://cfcanada.fticonsulting.com/harte.