Harte Gold Announces Closing of $24.8 Million Strategic Investment by New Gold

TORONTO,, March 24, 2021 / CNW / – Harte Gold Corp. (“Harte Gold” or “Company”) (TSX: HRT) (OTC: HRTFF) (Frankfurt: H4O) is pleased to announce that the pre-announced private accommodation subscription (“Strategic Investment”) from New Gold Inc. has ended. (“New Gold”) (TSX: NGD) in common shares of the Company (“Common Shares”).

Harte Gold Corp.  (CNW Group / Harte Gold Corp.)

Harte Gold Corp. (CNW Group / Harte Gold Corp.)

In connection with the closure of the strategic investment, New Gold was issued 154,940,155 ordinary shares at a price of $ 0.16 per ordinary share, for gross income from $ 24,790,424.

The company plans to use the revenues mainly for accelerated mining development, planned expansion and planned March 31, 2021 $ 3.3 million payment of the debt to BNP Paribas.

In exchange for waiving certain rights in connection with the strategic investment, the company issued a deferred participation order to ANR Investments BV (“Appian”), which will allow Appian to acquire up to 55,802,812 ordinary shares in $ 0.18 per share for a period of 15 months thereafter March 24, 2021 (“Appian Deferred Participation Award”). The Appian Deferred Participation Guarantee may not be exercised by Appian, with certain exceptions until March 24, 2022. New Gold was also ordered (New Gold Guarantee) to grant New Gold the right, subject to Appian exercising Appian Deferred Participation Warrant, to acquire up to 8,314,619 additional common shares in New Gold. $ 0.18 of ordinary shares in order to maintain its proportional interest in the Company.

The granting of the deferred participation guarantee to Appian described herein is a “related party transaction” as defined in Multilateral Instrument 61-101, Protection of holders of minority securities in special transactions (“MI 61-101”). The Company is exempted from the requirements for obtaining a formal assessment or approval from a minority shareholder in connection with such a grant, relying on Sections 5.5 (a) and 5.7 (1) (a) of MI 61-101, respectively, as a fair market value of such the grant does not exceed 25% of the market capitalization of the Company, calculated in accordance with MI 61-101.

About Harte Gold Corp .:

Harte Gold owns a 100% stake in the Sugar Zone mine located in White River, Canada. The sugar zone mine went into commercial production in 2019. The production guidelines range from 60,000 to 65,000 ounces of Au for 2021. The company has additional potential by exploring the ownership of the sugar zone, which covers 81,287 hectares, covering a significant area of green stones. Harte Gold trades on TSX under the symbol “HRT”, on OTC under the symbol “HRTFF” and on the Frankfurt Stock Exchange under the symbol “H4O”.

Warning note on forecast information:

This news release includes “forward-looking statements” within the meaning of applicable securities legislation, which are based on management’s opinions and assessments and are subject to various risks and uncertainties and other factors that could lead to actual events or results. differ significantly from those provided for in the forward-looking statements. Forecast statements are often, but not always, identified through the use of words such as “search”, “anticipate”, “budget”, “plan”, “continue”, “forecast”, “expect”, “forecast”, “may”. , “will”, “project”, “prediction”, “potential”, “guidance”, “intention”, “may”, “may”, “should”, “believe” and similar words implying future results or statements about perspective. The specific forward-looking statements in this press release include, but are not limited to, that the company uses the proceeds of the strategic investment primarily for accelerated mine development, planned expansion and planned March 31, 2021 $ 3.3 million debt repayment to BNP; gold yield from 60,000 to 65,000 ounces of Au for 2021; and the Company, which has additional potential through exploration in the ownership of the sugar zone. The forward-looking statements are necessarily based on a number of estimates and assumptions, including material estimates and assumptions related to the factors set out below, although considered reasonable by the Company at the date of this press release in light of management’s experience and perception. the current conditions and the expected development, by their nature, are subject to significant business, economic and competitive uncertainties and unforeseen circumstances. Known and unknown factors may lead to significant differences in actual results from those predicted in the forward-looking statements, and such statements and information should not be unduly relied upon. Such risks and uncertainties include, but are not limited to, the absence of default events or breaches of key financial agreements, including agreements with BNP Paribas and Appian; the company’s ability 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 research, development and production; delays or changes in plans for research or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; uncertainty about the Company’s ability to obtain all permits, agreements, consents or permits required for its operations and activities; and risks to health, safety and the environment, the risk of fluctuations in commodity prices and exchange rates, Harte Gold’s ability to finance the capital and operating costs needed to achieve Harte Gold’s business objectives, the uncertainty associated with trade and negotiations with contractors and other countries and risks related to international business activities, as well as other risks and uncertainties, which are described in more detail in the annual information form of the Company from March 25, 2020and in other documents of the Company with securities and regulatory bodies, which are available to SEDAR at www.sedar.com.

Due to the risks, uncertainties and assumptions inherent in the forward-looking statements, future investors in the Company’s securities should not rely unnecessarily on these forward-looking statements. Readers are warned that the above list of risks, uncertainties and other factors is not exhaustive. The forward-looking statements contained in this news release are made as of the present date and the company undertakes no obligation to publicly update or revise any forward-looking statements or other documents submitted to the Canadian regulatory authorities, whether or not as a result of new information, future events or otherwise, except in accordance with applicable securities legislation. The foregoing statements are expressly qualified by this warning statement. The Toronto Stock Exchange has not reviewed and is not responsible for the adequacy or accuracy of this news release.

All figures are in Canadian dollars, unless otherwise stated.

SOURCE Harte Gold Corp.



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