Harte Gold Announces Initial Closing under Private Placement
October 22, 2018 (Source) — HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) has raised gross proceeds of $5,588,000 and issued 11,282,615 Flow-Through shares pursuant to the initial closing of a non-brokered private placement of up to 19,230,769 Flow-Through Shares priced at $0.52 for gross proceeds of up to $10,000,000.
Finder’s fees payable under the private placement consist of a cash payment equal to 5% of cash raised and that number of common share purchase warrants equal to 5% of the number of Shares issued in connection with certain orders, for a total of $20,410 and 39,250 warrants. Finder’s warrants are exercisable at $0.52 for a period of eighteen (18) months from closing.
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As part of the private placement, Harte Gold announces an investment by Sprott Asset Management LP (“Sprott”), and its wholly-owned affiliates, for approximately $4.2 million.
Stephen G. Roman, President and CEO of Harte Gold, commented, “We are pleased to announce an equity investment by Sprott, who is also a key lender to the Sugar Zone Project. We appreciate their support and commitment to the Company. Based on exploration results during 2018, we have a significant amount of exploration budgeted for 2019 that will support the expansion of Sugar and Middle Zone mineralization down dip and delineation of known targets along strike and elsewhere on the property. While we anticipate future cash flows as a financing source for this exploration, proceeds from this flow through will greatly accelerate drilling of high-priority targets in the near term.”
About Harte Gold Corp.
Harte Gold is Ontario’s newest gold producer through its wholly owned Sugar Zone Mine in White River Ontario. Using a 3 g/t gold cut-off, the NI 43-101 compliant Mineral Resource Estimate dated February 15, 2018 contains an Indicated Mineral Resource of 2,607,000 tonnes grading 8.52 g/t for 714,200 ounces contained gold and an Inferred Mineral Resource of 3,590,000 tonnes, grading 6.59 g/t for 760,800 ounces contained gold. The Company is currently completing a 100,000 metre drill program on near mine and exploration targets, which will be incorporated in an updated NI 43-101 compliant Mineral Resource Estimate and mine plan targeted for Q1, 2019. Exploration on the Sugar Zone property includes 83,850 hectares encompassing a significant greenstone belt.
The Company has implemented a quality assurance and control (“QA/QC”) program to ensure sampling and analysis of mine and exploration work is conducted in accordance with industry standards. Drill core is sawn in half with one half of the core shipped to Actlabs Laboratories located in Thunder Bay, ON, while the other half is retained at the Company’s core facilities in White River, ON, for future verification. Certified reference standards and blanks are inserted into the sample stream on a regular interval basis and monitored as part of the QA/QC program. Gold analysis is performed by fire assay using atomic absorption, gravimetric or pulp metallic finish. The Mineral Resource Estimate was prepared in compliance with NI 43-101 guidelines. Robert Kusins, P. Geo., Harte Gold’s Senior Mineral Resource geologist, is the Company’s Qualified Person and has prepared, supervised the preparation, or approved the scientific and technical disclosure in this news release.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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