ONTARIO – Harte Gold Corp. of Toronto has announced a private placement of $27 million to be used to advance its Sugar Zone project 60 km east of the Hemlo gold camp.
Visible gold in a sample from the Sugar Zone project near Hemlo. (Image: Harte Gold Corp.)
Harte will issue approximately 55.3 million common shares at $0.47 each and about 1.8 million flow-through shares at $0.56 each. Orion Mine Finance has agreed to invest $15 million, and Appian Natural Resources Fund intends to participate on a pro rata basis, increasing its shareholding in Harte to about 19.99%.
Harte Gold has also agreed to provide Orion and Appian with an offtake of a portion of the Sugar Zone gold production at LME spot prices. The investors have also been granted a first offer on any future acquisition financing.
The underwriters of the offering have also been offered an overallotment of 15% additional common and flow-through shares. This would raise an additional gross amount of $4.0 million.
Earlier this year, Harte raised $25 million for Sugar Zone development. Visit www.HarteGold.com for project details.