TORONTO, Jan. 09, 2018 (GLOBE NEWSWIRE) -- HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX:HRT) (OTC:HRTFF) (Frankfurt:H4O) is pleased to announce the final closing of the common share tranche of its Bought Deal Private Placement financing announced December 12, 2017 (the “Offering”). Aggregate gross proceeds to the Company including the exercise of the underwriters’ option of the common share and flow through share tranches is $32,443,145.
Pursuant to the Offering, the Company issued a total of 57,372,841 common shares of the Company (“Common Shares”) at a price of C$0.47 per Common Share and 9,781,982 flow through common shares (“FT Shares”) at a price of $0.56 per FT Share. Appian Natural Resources Fund (“Appian”), through its wholly-owned subsidiary, maintained its pro rata interest by acquiring 16,284,143 Common Shares for gross proceeds to the Company of $7,653,547 in the final tranche of the offering. Upon closing of the Offering, Appian owns an aggregate of 113,091,588 Common Shares, or approximately 19.99% of the issued and outstanding Common Shares of the Company.
The Company plans to use the proceeds to fund development of the Sugar Zone Property including mill construction, an updated resource estimate, a National Instrument (“NI”) 43-101 Technical Report and general working capital purposes.
The sale of Common Shares to Appian under the Offering was a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Offering in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101, as the fair market value of the Common shares issued to Appian did not exceed 25% of the Company’s market capitalization calculated in accordance with MI 61-101.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Harte Gold Corp.
Harte Gold Corp. is focused on the exploration and development of its 100% owned Sugar Zone Property where it has recently completed a 70,000 tonne Advanced Exploration Bulk Sample at the Sugar Zone Deposit and received a Phase I Production Permit. The Sugar Zone Property is located 80 kilometres east of the Hemlo Gold Camp. The Preliminary Economic Assessment dated July 12, 2012, contains an Indicated Resource of 980,900 tonnes, grading 10.13 g/t for 319,280 ounces of contained gold (uncapped) and an Inferred Resource of 580,500 tonnes, grading 8.36 g/t Au for 155,960 ounces of contained gold (uncapped). The mineral resource was prepared in compliance with National Instrument 43-101 guidelines. Harte Gold also holds the Stoughton-Abitibi property located on the Destor-Porcupine Fault Zone adjacent and on strike of the Holloway Gold Mine.