Harte Gold Corp. (OTCMKTS – HRTFF) Announce Refinancing Of Its Debt, Shares Jump

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Shares of Harte Gold Corp. (OTCMKTS:HRTFF) are on fire over the past one week as the stock has jumped over 30% since May 02.

yesterday, the company had announced the total refinancing of its debt and the receipt of approval to expand operational throughput to 800 tonnes per day from 540 tonnes per day. The company has also announced the Feasibility study results of its 100% owned Sugar Zone Mine in White River Ontario.

Refinancing debt

The company has completed its BNP Paribas debt financing package for $72.5 million which comprises of a 6-year term loan of $52.5 million and 3-year revolving credit facility of $20.0 million. The repayment of the debt will commence on March 31, 2020, when Harte Gold will be produced in full capacity.

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Harte Gold has also settled the $10.0 million equity investment provided by Appian Natural Resources Fund at $0.27 per common stock.

On May 3rd Harte Gold received permits to increase their mine production to 800 tonnes per day which will increase the company’s annual gold production to around 65,000 ounces.

Sugar Zone Mine Feasibility Study

The Feasibility Study indicates probable mineral reserves of 3.9 million tonnes at 7.1g/t Au which contains 890 ounces of gold reflecting a 38% net mining dilution. The production will generate net free cash flow of 30 million annually at $1,300/oz gold. The process plant and mine are already operational thus they will not require any additional construction expenses.

The mine is an expansion opportunity for Harte Gold and it will produce 1,200tpd and could increase gold production to 95,000 ounces which will minimize cash costs based on benefits of scale. The FS demonstrated that the conversion of the near mine exploration target has the potential of extending the mine life as well as reducing mining development expenses for each tonne of ore processed.

Another opportunity identified is the installation of a leach circuit for on-site processing of floatation concentrate which will increase payable gold ounces as well as reduce costs.

Harte Gold is the newest gold producer in Ontario through the 100% owned Sugar Zone Mine in White River Ontario.