White River-area miner Harte Gold announced it has raised $25 million for development and exploration of its Sugar Zone property.
The fledgling Toronto-headquartered miner announced July 5 that it has completed its bought deal private placement financing, selling an aggregate of 40,323,500 common shares for gross proceeds of $25,000,570.
The company starts mine construction this month on its main Sugar Zone deposit while a $15-million exploration program continues on other nearby gold zones to expand the resource.
Six drill rigs are in the midst of a 75,000-metre program combined with airborne surveys, geochemical and field mapping across Harte’s four gold zones.
The Sugar Zone Property is 60 kilometres east of the Hemlo camp gold mines and is 25 kilometres north of White River off the Trans-Canada Highway.
The portal-and-ramp development is the first new mine in the Hemlo gold belt in about 30 years.
Commercial production is targeted for the second quarter of 2018.
The project holds an indicated resource of 1,117,000 tonnes grading 8.41 grams/tonne (g/t) gold for 302,000 ounces of contained gold and an inferred resource of 417,000 tonnes grading 7.13 g/t for 95,000 ounces of contained gold.
British-based Appian Natural Resource Fund acquired 19,485,574 in common shares for proceeds of more than $12 million. Appian is a metals and mining private equity fund formed in Jersey of the Channel Islands.
In a news release, Appian said it’s taking the long-term view of Harte Gold and Sugar Zone.
“Depending on the development of Harte's business, financial condition, the market for Harte's securities, general economic conditions and other factors, and subject to certain agreed standstill and other restrictions on sale, Appian may acquire additional securities of Harte, or sell all or some of the securities it holds, in the open market, by private agreement or otherwise.”