Harte Gold Announces Successful Bidder in Sale and Investment Solicitation Process

As announced on December 7, 2021, HARTE GOLD CORP. was granted creditor protection pursuant to an order granted by the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended. Pursuant to the Initial Order, FTI Consulting Canada Inc. was appointed as monitor of the Company.

As announced on December 20, 2021, the Court granted an order authorizing the Company to conduct, with the assistance of the Monitor, a sale and investment solicitation process in accordance with certain terms and conditions relating thereto. As part of the SISP Order, the Court approved the Company’s execution of a subscription agreement with 1000025833 Ontario Inc., a wholly-owned indirect subsidiary of Silver Lake Resources Limited and the use of the Subscription Agreement as a “stalking horse bid” in the context of the SISP, in order to establish the baseline consideration for the Company’s business and assets. The Bid Deadline for the submission of Qualified Bids under the SISP was 5:00 p.m. EST on January 14, 2022.

Harte Gold today announces that, in accordance with the SISP Procedures, an improved bid by the Investor has been designated as the Successful Bid and a Qualified Bid submitted by ANR Investments 2 B.V., an Appian affiliate has been designated the Back-Up Bid.  In accordance with the SISP Procedures, Harte Gold will be seeking Court approval of the Successful Bid and authority to consummate the transactions provided for therein at the Approval Hearing which will be held on January 28, 2022.

The Successful Bid provides for the payment of substantially all of Harte’s liabilities, other than the Excluded Liabilities, as defined in the Successful Bid.  Neither the Successful Bid nor the Back-Up Bid provide any recovery for holders of existing equity interests in the Company.

Additional Information

Capitalized terms not otherwise defined herein have the meanings attributed to them in the SISP Procedures.

Further updates will be provided as appropriate.  Copies of the Orders granted in by the Court, as well as any other information regarding the CCAA proceedings, are available on the Monitor’s website at http://cfcanada.fticonsulting.com/harte. A copy of the Successful Bid will be available in the Company’s motion for its approval, which will be made available on the Monitor’s website once filed with the Court.

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