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Private placement to raise $27 million for Harte Gold

Orion Mine Finance becomes shareholder in Sugar Zone mine project
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Harte Gold portal
Harte Gold's Sugar Zone portal.

Harte Gold has arranged a bought deal private placement of flow-through and common shares unit to raise $27 million to advance its Sugar Zone property near White River.

The company will issue 55.3 million common shares at $0.47 per common share and approximately 1.8 million flow-through common shares at $0.56 per flow-through common shares.

Appian Natural Resources Fund is increasing its shareholding to 19.99 per cent and Orion Mine Finance II LP has come aboard as a new shareholder, investing US$15 million.

The gross proceeds from the sale of flow-through shares will be spent on exploration. The net proceeds raised from the sale of common shares will be used to fund continued development of the Sugar Zone Property including mill construction, an updated resource estimate, technical report, and general working capital purposes.

"We appreciate the on-going support of our largest shareholder, Appian, and welcome Orion as a new shareholder in the company," said Harte president-CEO Stephen Roman in a Dec. 12 news release.

"On completion of the financing, we will have two significant resource capital partners with whom we look forward to collaborating on the completion of the construction of the Sugar Zone Mine.”

The company is conducting exploration on its project while Technica Group continues underground development of a mine on the property, 25 kilometres north of White River.