News

Harte Gold Receives Notice of Default from Appian

August 3, 2021

Toronto – August 3, 2021 – HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) announces that it received notice today from ANR Investments 2 B.V. and AHG (Jersey) Limited (“AHG” and, collectively, the “Appian Parties”) that events of default have occurred under the Financing Agreement dated July 14, 2020 between ANR and Harte Gold (the “Financing Agreement”) and the Facility Agreement dated August 28, 2020 between AHG and Harte Gold.

Among other alleged events of default, the Appian Parties cite the Company’s default under its senior credit facility agreement (the “BNP Facility”) with BNP Paribas (“BNP”) which triggers a cross-default under the Financing Agreement. (See the Company’s news release of July 30, 2021, with respect to the forbearance agreement between BNP and the Company relating to the BNP Facility.)

Pursuant to the terms of the Intercreditor Agreement dated August 28, 2020 between Harte Gold, AHG and BNP, AHG is prohibited, without the prior written consent of BNP, from taking any Enforcement Action (as defined in the Intercreditor Agreement) until a minimum of 135 days has passed from the date on which AHG delivers a notice to BNP.

The terms of the Credit Agreement provide for default interest at a rate per annum equal to 19.0% from the date of default. 

The Company will provide an update when further disclosure is required or otherwise appropriate.