Harte Gold Obtains Deferral of Senior Credit Facility and Hedge Payments and Waiver of Financial Covenants

TORONTO, June 30, 2021 /CNW/ - HARTE GOLD CORP. ("Harte Gold" or the "Company") (TSX: HRT) (OTC: HRTFF) (Frankfurt: H4O) announced today that BNP Paribas ("BNPP") has deferred various payments and waived compliance with the financial covenants under its senior credit facility agreement (the "Credit Facility"). 

BNPP has:

(a)	deferred to July 30, 2021, the due date of (i) the principal and interest payments under the Credit Facility originally scheduled for June 30, 2021, and (ii) the settlement payment under the hedge program originally scheduled for July 2, 2021; and
(b)	waived, until and including July 30, 2021, the Company's compliance with the financial covenants under the Credit Facility.

This deferral and waiver will facilitate the Company's strategic review process, initially announced by press release dated May 13, 2021, and subsequently updated by press release dated June 8, 2021, which is continuing.   However, there can be no assurance that the strategic review process will result in any transaction, whether BNPP will provide additional deferrals, waivers or amendments or what the terms or timing of such a transaction or additional deferrals, waivers or amendments might be.

To support the continuation of the strategic review process, the Company is actively managing its liquidity and capital resources.  Prioritizing cash preservation to allow for a robust process has included reducing certain capital expenditures which is anticipated to have an impact on production over the next 6 to 9 months. At this time, the Company is unable to provide updated guidance as the process continues to evolve but believes its revised 2021 guidance, issued on May 13, 2021, is at risk and may not be achieved.

The Company will provide further updates when appropriate.

Annual and Special Meeting of Shareholders (the "AGM"):

The Company reminds registered shareholders and duly appointed proxyholders that the AGM will be held later today at 10:00 am (Eastern Time). In light of the ongoing strategic review process, management will not be making a presentation but will endeavour to respond to questions to the extent possible in the circumstances.

The AGM will be held in virtual format only, which will be conducted by live audio webcast at https://virtual-meetings.tsxtrust.com/en/1119/.  Further information can be found on the Company's website at www.hartegold.com.

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, there being no assurance that the strategic review process will result in any transaction, whether BNPP will provide additional deferrals, waivers or amendments or what the terms or timing of such a transaction or additional deferrals, waivers or amendments might be; the reduction of certain capital expenditures being anticipated to have an impact on production over the next 6 to 9 months; the Company providing further updates when appropriate; there not being a presentation at the Company's Annual and Special Meeting of Shareholders to be held at 10:00 a.m. on June 30, 2021; 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.

please visit www.hartegold.com or contact: Shawn Howarth, Vice President, Corporate Development and Investor Relations, Tel : [phone], E-mail : [email protected]

Related Links

www.hartegold.com