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Harte Gold credit facilities assigned to Silver Lake by BNP Paribas
By Sarah Lizee
Olympia, Wash., Nov. 22 – Harte Gold Corp. said that BNP Paribas has assigned its rights and obligations in its capacity as lender under the company’s credit agreement dated Aug. 28, 2020, and the forbearance agreement dated July 30 to a wholly owned subsidiary of Silver Lake Resources Ltd., according to a press release.
Silver Lake said in a separate press release it “intends to work cooperatively with Harte Gold and its stakeholders to deliver an outcome which will provide the best opportunity to realize the full potential of the Sugar Zone mine and the associated land package.”
Under the terms of the forbearance agreement, Silver Lake can’t enforce its rights and remedies under the credit agreement until Nov. 30.
Harte Gold said it doesn’t know if the forbearance agreement will be further extended by Silver Lake or, if it is extended, what the terms of the extension would be.
If the forbearance agreement is not extended, Silver Lake will have the right to demand immediate repayment of all outstanding debt under the credit agreement and to initiate steps to enforce its rights.
Harte Gold said it continues to expect that its strategic review process will not result in a transaction that would provide any value for holders of its equity securities, including securities convertible into or exercisable for equity securities.
Based on the company's current cash flow forecast, it will still require additional financing prior to the end of 2021 in order to continue operations and conclude the strategic review process.
Harte Gold is a gold exploration company based in Toronto.
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