Harte Gold Announces Signing of Financing Agreement and Closing of US$9.5 Million Private Placement

TORONTO, July 14, 2020 (GLOBE NEWSWIRE) -- HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) is pleased to announce that it has signed a binding agreement with ANR Investments 2 B.V. (“Appian”) providing for up to US$30 million in financing (the “Financing Agreement”) and closed a related US$9.5 million Private Placement (as defined below). The Private Placement is part of the financing package to facilitate a restart of the Sugar Zone mining operation, as previously announced on July 1, 2020.

The Company has been in contact with its work force and expects to restart operations on or around July 17. A phased approach will be taken to restart the mine, starting with mine development and backfill. The Company expects to resume to full operations by the end of July.

Sam Coetzer, President and CEO of Harte Gold, commented, “With the first tranche of the financing completed, we are mobilizing our work force to site in a safe and orderly manner. We have received an overwhelmingly positive response from our employees, who are eager to return and excited to start.”

9,500,000 Series B special shares (the “Special Shares”) of the Company were issued by way of a private placement to ANR Investments B.V. (“ANR”) at a price of US$1.00 per Special Share for aggregate gross proceeds of US$9.5 million (the “Private Placement”). Proceeds will be used to fund working capital needs, the restart of the Sugar Zone Mine, and general corporate purposes.

Concurrent with the closing of the Private Placement, the Company issued to ANR (a) 6,970,844 common shares (each, a “Common Share”), representing an upfront arrangement fee equal to US$600,000 (or 2.0% of US$30 million) based on a price of Cdn$0.1173 per Common Share using a CAD-USD exchange rate of 0.7338; and (b) 7,500,000 purchase warrants to acquire Common Shares, exercisable at C$0.1349 (representing a 15% premium to the five-day VWAP of C$0.1173 as of July 1, 2020), which expire on July 14, 2025. The Company also entered into an offtake agreement with ANR, on the same terms and conditions as the original offtake agreement (as amended and except for the repurchase right), pursuant to which ANR was granted an 18.5% offtake of total Refined Gold (as defined in the original offtake agreement (as amended)) produced from the Sugar Zone properties until 500,000 ounces of Refined Gold are delivered.