New Gold to make a strategic investment in Harte Gold
The investment, by way of a private placement subscription by New Gold of 154,940,153 common shares of the company at a price of $0.16 per share, will result in Harte Gold raising total gross proceeds of approximately $24.8 million and provide New Gold with a 14.9% interest in the company's pro forma issued and outstanding common shares.
The company said that net proceeds will be used primarily toward accelerated mine development at Sugar Zone, planned expansion and the scheduled March 31, 2021 US$3.3 million debt payment to BNP.
President and CEO Frazer Bourchier commented, "We are pleased to welcome New Gold as a strategic investor. New Gold's investment represents more than just a significant financing – it is an endorsement of the potential of the Sugar Zone mine and property, and a vote of confidence that Harte Gold's operational team will continue to deliver on our impending growth strategy."
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. Production guidance is 60,000 to 65,000 oz Au for 2021. The company has further potential through exploration at the Sugar Zone property, which encompasses 81,287 hectares covering a significant greenstone belt.