Harte Gold Closes $2.5 Million Secured Note Offering & Provides Project Update
March 22, 2016 (Source) – HARTE GOLD CORP. (“Harte Gold”) (TSX: HRT) (OTC PINK: HRTFF) (FRANKFURT: H4O) announced it has raised gross proceeds of $2.5 million pursuant to the closing of a non-brokered Secured Note Offering comprised of two hundred and fifty (250) Units priced at $10,000 for gross proceeds of $2.5 million. Units consist of a Two Year $10,000 Secured Note with a 15% annual coupon and 40,000 common share purchase warrants exercisable at $0.15 for a period of two years from Closing.
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 investor warrants issued pursuant to certain orders, for a total of $72,750 and 291,000 warrants. Finder’s warrants are exercisable at $0.15 for a period of twenty-four (24) months from closing.
All common share purchase warrants issued under the private placement are subject to an accelerated expiry provision. Should the closing price of Harte Gold common shares on the Toronto Stock Exchange be equal to or greater than $0.20 for 10 consecutive trading days any time after closing, Harte Gold may accelerate the expiry date of the warrants by giving notice to the warrant holders through the issuance of a press release. The warrants will expire on the 30th day after the date on which such notice is given.
Proceeds from the Secured Note Offering replace the proposed Auramet LLC financing facility (see news release dated September 21, 2015) and will be allocated to Harte Gold’s fully permitted 70,000 tonne Advanced Exploration and Bulk Sample Project, commercial permitting and exploration at the Company’s Ontario properties.
Sugar Zone Advanced Exploration and Bulk Sample Project
Harte Gold announced that as of today’s date, 600 meters of ramp development have been completed and the first ore is anticipated prior to the end of March, 2016. Harte Gold has signed a final toll milling agreement with Barrick Gold Corp. for the processing of the 70,000 tonne bulk sample and awarded the tender for the crushing and hauling contract of the bulk sample to Kabi Lake Resources Corp. and its joint venture partner Pic Mobert First Nation (“Pic Mobert”).
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“We will be mining the first ore within the next week and anticipate shipping to Barrick’s Hemlo mill in April. Our mining operations team together with contract miner; Technica Mining Inc. are doing an excellent job on site where they are on budget, ahead of schedule and with no lost time accidents. We look forward to completing the Bulk Sample Project prior to year-end and will be applying for our commercial operating permits during this period,” said Stephen G. Roman, President and CEO.
Sugar Zone Property Exploration Program
Harte Gold is currently planning a deep geophysical survey to cover a 2 km x 1.5 km area between the Wolf Zone and Sugar Zone Deposit. The survey will provide information to a depth of 600 meters in order to establish drill targets that will test for the continuity of gold mineralization between the Wolf Zone and Sugar Zone Deposit. Harte Gold is reviewing survey proposals and will award the geophysical survey contract in April and expects the program to start in May.
Drill Program – NI 43-101 Technical Report Update
Harte Gold plans to proceed with a drill program to test the area between the Wolf Zone and Sugar Zone Deposit as well as test the down dip extension of the Sugar Zone deposit between the 500m and the SZ-12-37 Discovery Hole at the 1,000m level. On completion of the drill program and the advanced exploration and bulk sample project Harte will update its current NI 43-101 Technical Report.
Stoughton Abitibi Property
Harte Gold has received approval for a geophysical survey and drill program. Harte Gold will focus on potential on-strike extensions of the Lakeshore Gold “Smoke Deep” Discovery located west of the Stoughton Abitibi property.
Harte Gold also announced that it has issued 1,200,000 stock options to acquire common shares of Harte Gold to Employees, Pic Mobert and a Director. The stock options are exercisable at $0.175 and expire March 22, 2021.
About Harte Gold Corp.
Harte Gold Corp. is focused on the exploration and development of its 100% owned Sugar Zone property where it has permitted a 70,000 tonne advanced exploration and bulk sample for the Sugar Zone Deposit. The Sugar Zone property is located 60 kilometers east of the Hemlo Gold Camp and as per 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. George A. Flach P. Geo, Vice President Exploration, is the Qualified Person for Harte Gold. Harte Gold also holds the Stoughton-Abitibi property located on the Destor-Porcupine Fault Zone which is adjacent to and on strike of Lakeshore Gold’s Holloway Gold Mine.
Common Shares Outstanding: 306,251,031
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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