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Harte Gold closes USD$18.5 million credit deal

Sep 1, 2020

Cash-strapped Harte Gold has some breathing room. Further to news releases of July 1 and 14, 2020, Harte Gold Corp. has closed a previously announced US$18.5 million non-revolving credit facility. The credit facility, provided by AHG (Jersey) Limited, an affiliate of ANR Investments 2 B.V. ("Appian"), is secured by a second priority ranking lien on the Company's assets, matures on June 30, 2023 and accrues interest at a rate per annum equal to 14%, which is payable in common shares of the Company. US$1 million of the proceeds from the Credit Facility will be used to prepay part of the Company's currently existing non-revolving term credit facility with BNP Paribas and the other lenders party thereto from time to time (the "BNP Facility").

In connection with the closing of the Credit Facility, the 9,500,000 Series B special shares that were previously issued to ANR Investments B.V., an affiliate of Appian, converted into US$9.5 million of principal amount under the Credit Facility, bringing the aggregate principal amount of the Credit Facility to US$28 million. The Credit Facility also maintains an uncommitted US$20 million accordion option, which can increase the aggregate principal amount available under the Credit Facility to US$48 million.

The Company also entered into certain amendments to the BNP Facility in order to, inter alia, permit the Company to enter into the Credit Facility.

The Company also concluded the previously announced 0.5% NSR on the entire Sugar Zone Property with an affiliate of Appian on similar terms as the Company's existing 1.5% NSR, in exchange for payment to the Company of US$2.0 million.


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