Harte Gold Announces Auction as Part of Sales and Investment Solicitation Process

TORONTO, January 17, 2022 /CNW/ – As previously announced on December 7, 2021, HARTE GOLD CORP. (“Harte Gold“or the”Society“) (TSX: HRT) (OTC: HRTFF) (Frankfurt: H4O) has been granted protection from its creditors pursuant to an order (the “Initial order“) granted by the Ontario Superior Court of Justice (Commercial List) (the “To research“) under the Companies Creditors Arrangement Act, RSC 1985, c. C-36, as amended (the “CCAA“). Pursuant to the Initial Order, FTI Consulting Canada Inc. has been appointed as controller of the Company (in such capacity, the “To watch“).

As announced on December 20, 2021, the Court made an order (the “SISP command“) authorizing the Company to conduct, with the assistance of the Monitor, a sale and investment solicitation process (the “SISP“) in accordance with certain terms and conditions relating thereto (the “SISP Procedures“). As part of the SISP Order, the Court approved the execution by the Company of a subscription agreement (the “Subscription contract“) with 1000025833 Ontario Inc. (the “Investor“), an indirect wholly-owned subsidiary of Silver Lake Resources Limited (“Silver Lake“) (ASX: SLR) and the use of the Subscription Agreement as a “stalking horse auction” (the “Horse auction approaching“) under the SISP, in order to establish the basic consideration for the Company’s business and assets. The deadline for submission of qualified bids under the SISP was 5:00 p.m. (Eastern time in effect) on January 14, 2022.

It has been determined that a qualified bid, other than the Stalking Horse Bid, has been received in accordance with SISP procedures and Harte Gold, in consultation with the Monitor, will conduct an auction on January 19, 2022 (the “Auction“) to determine the winning bid. Following the auction, Harte Gold will seek an order from the court approving the winning bid.

Additional information

Capitalized terms not otherwise defined herein have the meaning ascribed to them in the SISP Procedures.

Further updates will be provided as needed. A copy of the Initial Order, ARIO, SISP Order, SISP Proceedings, and any other information regarding the CCAA proceeding, are available on the Monitor’s website at http://cfcanada.fticonsulting.com/harte.

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 additional potential through exploration on the Sugar Zone property, which comprises 81,287 hectares covering a significant greenstone belt. Harte Gold trades on the Toronto Stock Exchange under the symbol “HRT”, on the Frankfurt Stock Exchange under the symbol “HRTFF” and on the Frankfurt Stock Exchange under the symbol “H4O”.

Caution Regarding Forward-Looking Information:

This press release contains “forward-looking statements”, within the meaning of applicable securities laws, 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”, “anticipate”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “could”, “should”, “believe ” and similar words suggesting future results or statements about a prospect. Specific forward-looking statements contained in this press release include, but are not limited to, Harte Gold, in consultation with the Monitor, conducting the auction on January 19, 2022 determine the winning bid; following the auction, Harte Gold applied to the court for an order approving the winning bid; ; further updates are provided as appropriate; and the Company having additional potential through exploration on the Sugar Zone property. Forward-looking statements are necessarily based on a number of estimates and assumptions, including significant estimates and assumptions relating to the factors set forth below which, although believed to be reasonable by the Company as of the date of this press 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. These risks and uncertainties include, but are not limited to, the strategic review process not resulting in a transaction that brings value to the Company’s stakeholders; the Company’s inability to obtain sufficient funding to complete the strategic review process; the Company being unable to continue its activity; the risk that the Company does not have adequate sources of financing to finance the operations of the Company in the near future; the risk that the Company may not be able to obtain sufficient financing for working capital, capital expenditures, debt service requirements and general corporate or other purposes; the risk that the Company does not have sufficient assets to meet its commitments or satisfy its creditors; 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 related to the exploration, development and production; delays or changes in plans for exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections regarding production, costs and expenses; the uncertainty surrounding the Company’s ability to obtain all permits, agreements, consents or authorizations necessary for its operations and activities; and health, safety and environmental risks, the risk of fluctuating commodity prices and exchange rates, Harte Gold’s ability to fund capital and operating expenditures necessary to achieve business objectives of Harte Gold, the uncertainty associated with business negotiations and dealing with contractors and other parties and the 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 documents filed by 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 the Company’s securities should not place undue reliance on such forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof, and the Company undertakes no obligation to publicly update or revise the forward-looking statements or in any other documents filed with the Canadian securities authorities, whether whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. Forward-looking statements are expressly qualified by this cautionary statement. The Toronto Stock Exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of this press release.

SOURCE Harte Gold Corp.


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