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Toronto – June 8, 2021 – HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) announced today an update to its strategic review process and amendment to its senior credit facility agreement with BNP Paribas (“BNPP”).
Strategic Review Process:
On May 13, 2021, the Company announced it would be initiating a strategic review process to explore, review and evaluate a broad range of alternatives focused on ensuring the Company’s financial liquidity and to fund accelerated life-of-mine capital. The Company has now advanced this process on several fronts.
The Company has engaged Scotiabank to assist in generating and evaluating various financing and strategic alternatives with potential investors. A number of interested parties have signed confidentiality agreements and have been provided with access to a virtual data room to conduct further due diligence of the Company.
The Company has also engaged a U.S. based debt advisor to evaluate potential debt financing solutions including, but not limited to, a refinancing of its senior credit facilities. This process is currently underway.
Harte Gold’s Board of Directors has established a Strategic Committee to support management in evaluating all strategic alternatives. The Strategic Committee members are Joseph Conway (Chair), Douglas Cater and Geoffrey Cohen.
Senior Credit Facility Amendment:
To provide the Company with the liquidity required during the initial phase of the strategic review process and to ensure that the Company is not in breach of its minimum liquidity financial covenant, BNP Paribas (BNPP) has temporarily reduced the minimum liquidity requirement under the Company’s senior credit facility from C$10 million to C$4.75 million until June 30, 2021.
The Company’s focus is on advancing the strategic review process and concurrently working with BNP on additional amendments to the senior credit facility, to further support the strategic review process to a conclusion.
The Company intends to complete the strategic review process in a timely fashion and obtain additional amendments to the senior credit facility. However, there can be no assurance that the strategic review process will result in any transaction, whether BNP will provide additional amendments to the senior credit facility or, if a transaction is concluded and BNP provides the additional amendments, what the terms or timing of such a transaction or additional amendments will be. The Company will provide an update when further disclosure is required or otherwise appropriate.
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