The Ontario Superior Court of Justice has approved the sale of White River miner Harte Gold to Silver Lake Resources of Australia.
The Toronto mining company announced Jan. 28 that the court approved the bid at a hearing that day and has given the companies the authority to close the transaction, expected in mid-February.
Harte entered creditor protection on Dec. 7.
The company's only mining asset is the Sugar Zone Mine, north of White River. It entered commercial production in 2019.
Harte and a court-appointed monitor chose Silver Lake over another undisclosed bidder when the CCAA (Companies' Creditors Arrangement Act) sales process went to the auction stage to pick the successful bid.
Perth-headquartered Silver Lake came upon the scene in late 2021 as a 'stalking horse' bidder for cash-strapped Harte which had threatened closure by year's end.
The transaction involves US$74.5 million in credit, reflecting the value of loans Harte owes Silver Lake, along with $22 million out of the money hedge book and accounts associated with operating of the mine and the issuing of Silver Lakes shares at an estimated value of $28 million, with cash consideration of up to $3 million.