Harte Gold Provides Corporate Update and Announces Results from Annual and Special Meeting of Shareholders
June 24, 2020 (Source) – HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) is pleased to announce that it held its annual and special meeting of shareholders earlier today (the “AGM”). At the AGM, management of the Company provided a corporate update, the highlights of which included, among others:
- Mine Restart – The Company has completed a detailed restart and 18-month operating plan for the Sugar Zone Mine, which will see the mine return to 800 tpd by the end of the year. In the meantime, the care and maintenance teams continue to keep the mine in good stead for recommencement of operations.
- Transition to Owner-Operator – Steps are being taken to transition to owner-operator mining concurrently with a restart of the Sugar Zone Mine. Discussions are underway with the Company’s mining contractor to support transition. The Company anticipates a transition period of approximately three months after restart.
- Equipment Financing – The Company is in term sheet discussions to obtain equipment financing to purchase the mine fleet.
- Ore Quality Management – Grade control practices are being improved to better manage ore recovery and grade, once mining resumes.
- Expansion Study – The Company is exploring an expansion scenario to increase mine and mill throughput by 50%, from 800 tpd to 1,200 tpd. Previous studies determined that the Sugar Zone Mine could support 1,200 tpd based on the current Mineral Resource Estimate (see press release dated April 8, 2019). The Feasibility Study RFP process is approximately 90% complete and an independent mining engineer has been engaged to assist with optimization, mine planning and scheduling. The Company expects to deliver a Feasibility Study in the fourth quarter of this year.
- BNP Debt – The Company is working with its senior lender BNP Paribas on the re-sculpting of its debt and is targeting a full solution in the fourth quarter of this year.
- Renewed Exploration Strategy – Desktop work over the past two months has allowed the Company to revamp its exploration program with the goal of expanding near mine mineralization and developing regional targets to become future sources of mill feed. The Company is evaluating its high priority targets and summer exploration will commence on resumption of operations.
- Required Financing – Putting the Sugar Zone Mine on care and maintenance as a result of COVID-19 has had a negative impact on the Company’s working capital position. The Company’s primary objective is to obtain sufficient financing to enable a successful restart of the mine. The Company is currently using its cash on hand to support care and maintenance costs until such funding discussions are concluded. There is no assurance that the required funding will be obtained or, if obtained, that the terms of such financing will be favourable to the Company. The Company’s ability to continue as a going concern is dependent on obtaining such financing in the near term. Further updates will be provided to the market as information becomes available.
Sam Coetzer, President and CEO commented:
“Over the last two months, a lot has been accomplished to significantly de-risk the start-up plan and reposition the Company to take control of the mining operations. While we remain in temporary care and maintenance, the Company has been in constant communication with employees and various stakeholders, who have expressed a keen interest and readiness to get back to work and the mine and surface infrastructure remain in excellent working condition. It is a priority for the Company to obtain financing in order to resume operations. To that end, management is working diligently with the Board to obtain financing to ensure the Company is fully funded through restart and future mine expansion and we will be providing an update to the market as information becomes available.”
56.94% of the issued and outstanding common shares of the Company were represented in person or by proxy at the AGM. Each of the matters presented at the AGM were duly passed by the shareholders of the Company.
Election of Directors
|Nominees||Number of Votes For||Number of Votes Withheld||Percentage of Votes For||Percentage of Votes Withheld|
|Samuel T. Coetzer||456,257,746||6,985,605||98.49%||1.51%|
|Stephen G. Roman||386,910,227||76,333,124||83.52%||16.48%|
|Michael W. Scherb||362,917,051||100,326,300||78.34%||21.66%|
|Dr. Richard H. Sutcliffe||410,946,970||52,296,381||88.71%||11.29%|
|Number of Votes For||Number of Votes Withheld*/Against||Percentage of Votes For||Percentage of Votes Withheld*/Against|
|Appointment of Auditors*||474,090,770||7,795,380||98.38%||1.62%|
|Approval of Warrants Issued to ANR Investments B.V.||392,544,146||70,699,205||84.74%||15.26%|
|Approval of Warrants Issued to ANR Investments B.V. (Majority of Minority)||185,827,812||70,699,205||72.44%||27.56%|
|Approval of Unallocated Options, Rights or Other Entitlements under the Option Plan||392,038,591||71,204,760||84.63%||15.37%|
|Approval of Deferred Share Unit Plan||432,843,670||30,399,681||93.44%||6.56%|
|Approval of Performance and Restricted Share Unit Plan||433,440,036||29,803,315||93.57%||6.43%|
Scientific and technical information contained in this news release was reviewed and approved by Dr. Martin Raffield, Executive Vice President and Chief Operating Officer of Harte Gold, who is a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Harte Gold Corp.
Harte Gold holds a 100% interest in the Sugar Zone Mine located in White River, Canada. The Sugar Zone Mine entered commercial production in 2019. The Company has further potential through exploration at the Sugar Zone Property, which encompasses 79,335 hectares covering a significant greenstone belt. Harte Gold trades on the Toronto Stock Exchange under the symbol “HRT”, on the OTC under the symbol “HRTFF” and on the Frankfurt Exchange under the symbol “H4O”.
Cautionary note regarding forward-looking information:
This news release includes “forward-looking statements”, within the meaning of applicable securities legislation and include but are not limited to, statements and information regarding the mine returning to 800 tpd by the end of the year; transitioning to owner-operator approximately three months after restart; reaching satisfactory terms on equipment financing; the delivery of a Feasibility Study in the fourth quarter of this year; resolving the BNP debt by Q4 2020; the summer exploration campaign commencing immediately on resumption of operations; and the Company updating the market with respect to obtaining required financing in the near term. Forward-looking statements are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “budget”, “plan”, “continue”, “envisage”, “estimate”, “expect”, “forecast”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such risks and uncertainties include, but are not limited to, the Company obtaining the financing required to restart mining operations; there being no events of default or breaches of key financing agreements, including agreements with BNP Paribas and Appian; the Company being able to attract and retain qualified candidates to join the Company’s management team and board of directors, risks associated with the mining industry, including operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of the Company to obtain all permits, agreements, consents or authorizations required for its operations and activities; and health, safety and environmental risks, the risk of commodity price and foreign exchange rate fluctuations, the ability of Harte Gold to fund the capital and operating expenses necessary to achieve the business objectives of Harte Gold, the uncertainty associated with commercial negotiations and negotiating with contractors and other parties and risks associated with international business activities and the impact of any escalation in the severity of the COVID-19 pandemic on any of the foregoing, as well as other risks and uncertainties which are more fully described in the Company’s Annual Information Form dated March 25, 2020, and in other filings of the Company with securities and regulatory authorities which are available on SEDAR at www.sedar.com. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of the Company should not place undue reliance on these forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements are expressly qualified by this cautionary statement.