Canadian Mining Journal

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Harte Gold nears commercial production at Sugar



Harte Gold (TSX: HRT; US-OTC: HRTFF) is fully funded to finish construction of its Sugar Zone project in northern Ontario, 80 km east of the Hemlo gold camp, and plans to start producing gold in July with commercial production to follow in the fourth quarter.

The company announced a US$70 million debt financing package with Sprott Private Resources Lending and Appian Natural Resources Fund this week.

Sprott is providing a US$50 million senior secured debt facility with a 20-month principal holiday and 13-month period of interest deferral, while Appian has committed to a six-month loan of US$20 million at an interest rate of 9.5%. Harte has the option to extend the term at an interest rate of 11.5%.

The financing “represents a fully funded solution with enough liquidity to support ramp-up of our operations and cover any unforeseen downturn in commodity prices, without having to approach the equity markets or any other financing dilutive to shareholders,” Stephen Roman, Harte’s president and CEO, states in news release.

At the end of March, about C$58 million remained to be spent for the year to finish the process plant, continue underground development and for working capital.

Once completed, the Sugar Zone underground mine will operate for 11 years and produce 904,000 oz. gold — or an average of 80,700 oz. of gold a year — at cash costs of US$507 per oz. gold and all-in sustaining costs of US$708 per oz.

Continue reading at The Northern Miner.