TORONTO, Aug. 3, 2021 /CNW/ - HARTE GOLD CORP.
("Harte Gold" or the "Company") (TSX: HRT) (OTC:
HRTFF) (Frankfurt: H4O) announces that it received notice today
from ANR Investments 2 B.V. and AHG
(Jersey) Limited ("AHG" and, collectively, the "Appian
Parties") that events of default have occurred under the
Financing Agreement dated July 14,
2020 between ANR and Harte Gold (the "Financing
Agreement") and the Facility Agreement dated August 28, 2020 between AHG and Harte Gold.
Among other alleged events of default, the Appian Parties cite
the Company's default under its senior credit facility agreement
(the "BNP Facility") with BNP Paribas ("BNP") which
triggers a cross-default under the Financing Agreement. (See the
Company's news release of July 30,
2021, with respect to the forbearance agreement between BNP
and the Company relating to the BNP Facility.)
Pursuant to the terms of the Intercreditor Agreement dated
August 28, 2020 between Harte Gold,
AHG and BNP, AHG is prohibited, without the prior written consent
of BNP, from taking any Enforcement Action (as defined in the
Intercreditor Agreement) until a minimum of 135 days has passed
from the date on which AHG delivers a notice to BNP.
The terms of the Credit Agreement provide for default interest
at a rate per annum equal to 19.0% from the date of default.
The Company will provide an update when further disclosure is
required or otherwise appropriate.
About Harte Gold Corp.
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. The Company has
further potential through exploration at the Sugar Zone Property,
which encompasses 81,287 hectares covering a significant greenstone
belt. Harte Gold trades on the TSX under the symbol "HRT", on the
OTC under the symbol "HRTFF" and on the Frankfurt Exchange under
the symbol "H4O".
Cautionary note regarding forward-looking
information:
This news release includes "forward-looking statements",
within the meaning of applicable securities legislation, which are
based on the opinions and estimates of management and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "budget", "plan", "continue",
"estimate", "expect", "forecast", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar words suggesting future outcomes or
statements regarding an outlook. Specific forward-looking
statements in this press release include, but are not limited to,
the Company providing an update when further disclosure is required
or otherwise appropriate and the Company having further potential
through exploration at the Sugar Zone Property. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions including material estimates and assumptions related to
the factors set forth below that, while considered reasonable by
the Company as at the date of this press release in light of
management's experience and perception of current conditions and
expected developments, are inherently subject to significant
business, economic, and competitive uncertainties and
contingencies. Known and unknown factors could cause actual results
to differ materially from those projected in the forward-looking
statements, and undue reliance should not be placed on such
statements and information. Such risks and uncertainties include,
but are not limited to, there being no events of default or
breaches of key financing agreements, including agreements with BNP
Paribas and Appian; the Company being able to attract and retain
qualified candidates to join the Company's management team and
board of directors, risks associated with the mining industry,
including operational risks in exploration, development and
production; delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections in
relation to production, costs and expenses; the uncertainty
surrounding the ability of the Company to obtain all permits,
agreements, consents or authorizations required for its operations
and activities; and health, safety and environmental risks, the
risk of commodity price and foreign exchange rate fluctuations, the
ability of Harte Gold to fund the capital and operating expenses
necessary to achieve the business objectives of Harte Gold, the
uncertainty associated with commercial negotiations and negotiating
with contractors and other parties and risks associated with
international business activities, as well as other risks and
uncertainties which are more fully described in the Company's
Annual Information Form dated March 30,
2021, and in other filings of the Company with securities
and regulatory authorities which are available on SEDAR at
www.sedar.com. Due to the risks,
uncertainties and assumptions inherent in forward-looking
statements, prospective investors in securities of the
Company should not place undue reliance on these
forward-looking statements. Readers are cautioned that the
foregoing list of risks, uncertainties and other factors are not
exhaustive. The forward-looking statements contained in this news
release are made as of the date hereof and the Company undertakes
no obligation to update publicly or revise any forward-looking
statements or in any other documents filed with Canadian securities
regulatory authorities, whether as a result of new information,
future events or otherwise, except in accordance with applicable
securities laws. The forward-looking statements are expressly
qualified by this cautionary statement. The Toronto Stock Exchange
has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
SOURCE Harte Gold Corp.