Harte Gold Secures $25 Million to Advance Sugar Zone Property, Ontario
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Harte Gold Corp. has secured $25 million to accelerate exploration and development work at the Sugar Zone property located in White River, Ontario.
The financing consists of a $15 million bought deal offering of flow-through common shares priced at $0.39 per flow-through common share with Cantor Fitzgerald Canada Corporation and a concurrent $10 million private placement financing of common shares priced at $0.30 per common share with Appian Natural Resources Fund through its wholly owned subsidiaries, for gross proceeds of $25 million at a blended average price of $0.35 per common share. The private placements are expected to close on or before December 14, 2016.
Net proceeds received from the flow-through offering and private placement will be used to accelerate exploration and development of the Sugar Zone property. Harte Gold and Appian have agreed to a twenty-four (24) month budget to fund exploration drilling, infill and resource definition drilling, large scale regional exploration, continued underground development and working capital.
“We are delighted to have Appian as a strategic investor. These financings provide Harte Gold with the funding it will need to pursue its exploration and development programs and establishes a new relationship with Appian, a leading technically-focused private equity fund. Appian brings a uniquely collaborative approach that seeks to leverage Appian’s world-class operational team and financial expertise to maximize value for all stakeholders. We look forward to the mutually beneficial exploration and development of our Sugar Zone property,” said Stephen G. Roman, chairman, president and CEO of Harte Gold.
“Appian is pleased with its investment in Harte Gold due to the Sugar Zone property’s high-grade, low cost nature with significant resource exploration potential. Following on the good work to date by management, we see an opportunity to work, in partnership with management as co-significant shareholders in the project, to accelerate exploration and development of the Sugar Zone property, to increase defined resources and advance the project to a near-term construction decision,” said Michael W. Scherb, founder of Appian.
About Harte Gold
Harte Gold Corp. is focused on the exploration and development of its 100 percent owned Sugar Zone property where it has permitted a 70,000 tonne advanced exploration bulk sample for the Sugar Zone Deposit. The Sugar Zone property is located 80 kilometers 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 NI 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.
To stop by Harte Gold’s website, CLICK HERE
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