Harte Gold Announces BNPP’s Assignment of Credit Facilities

HARTE GOLD CORP. announces that it has been advised that BNP Paribas (“BNPP”) has assigned its rights and obligations in its capacity as lender under the Amended and Restated Credit Agreement made as of August 28, 2020 (as amended to the date hereof, the “Credit Agreement”) and the Forbearance Agreement made as of July 30, 2021 (as amended to the date hereof, the “Forbearance Agreement”) to a wholly-owned subsidiary of Silver Lake Resources Limited (“Silver Lake”).

Silver Lake has stated in its news release of earlier today that it “intends to work cooperatively with Harte Gold and its stakeholders to deliver an outcome which will provide the best opportunity to realize the full potential of the Sugar Zone mine and the associated land package“.

Pursuant to the terms of the Forbearance Agreement, Silver Lake cannot, subject to certain terms and conditions, enforce its rights and remedies under the Credit Agreement until November 30, 2021 (the “Forbearance Period”). There can be no assurance that the Forbearance Agreement will be further extended by Silver Lake or, if it is extended, what the terms of such further extension will be. If the Forbearance Agreement is not extended at the end of the Forbearance Period, Silver Lake will have the right to demand immediate repayment of all outstanding indebtedness under the Credit Agreement and to initiate steps to enforce its rights.

The Strategic Review Process has not yet resulted in any binding offers being received by the Company. There can be no assurance that the Strategic Review Process will result in a transaction, what the value of any transaction might be, what the terms or timing of such a transaction might be or that the Company will be able to continue as a going concern.

The Company continues to expect that the Strategic Review Process will not result in a transaction which would provide any value for holders of Harte Gold’s equity securities (including securities convertible into or exercisable for equity securities). As a result of the foregoing, holders of Harte Gold’s equity securities (including securities convertible into or exercisable for equity securities) are cautioned that trading in such securities is highly speculative, and that the trading prices for such securities may bear little or no relationship to the actual realization of value, if any, by holders thereof at the ultimate outcome of the Strategic Review Process. Also, there can be no assurance that the Company’s common shares will continue to trade on the TSX or on any other trading platform.

Based on the Company’s current cash flow forecast, the Company will still require additional financing prior to the end of 2021 in order to continue operations and conclude the Strategic Review Process. However, there can be no assurance that the Company will obtain the required financing or what the terms of such financing might be.

The Company will provide updates when further disclosure is required or otherwise appropriate.

This Media Release

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