HARTE GOLD CORP. ("Harte Gold") has raised gross proceeds of $750,000, including $150,000 pursuant to the closing today (previous closing July 21, 2014) of a non-brokered private placement of up to 3,333,333 Units priced at $0.225 for gross proceeds of $750,000.
In the final tranche, Harte Gold issued 666,667 Units at $0.225 per Unit. Each Unit consists of one common share and one-half common share purchase warrant. Each full warrant is exercisable at $0.30 for a period of eighteen months from closing.
Finder's fees payable in connection with today's closing consist of a cash payment equal to 5% of cash raised and that number of common share purchase warrants equal to 5% of the number of Units issued pursuant to certain orders in the private placement, for a total of $5,001 and 22,225 warrants. Each Finder's warrant is exercisable at $0.24 for a period of eighteen months from closing.
Common share purchase warrants issued under the private placement (Unit and Finder's warrants) are subject to an acceleration clause. In the event the closing price of Harte Gold common shares is equal to or greater than $0.50 for a period of 10 consecutive trading days, Harte Gold may accelerate the expiry date of the warrants by giving notice to the holders thereof through the issuance of a press release. In such case, the warrants will expire on the 30th day after the date on which such notice is given.
Proceeds from the private placement will fund current exploration as well as development work related to the advanced exploration project (Sugar Zone Deposit) at Harte Gold's 100% owned Sugar Zone property, and general corporate purposes.
The Harte Gold geological team is significantly advancing ground proofing of multiple Induced Polarization ("IP") targets identified under Phase One and Phase Two IP Programs completed earlier. Drilling will commence on Tuesday, August 5, 2014, as previously announced (see News Release July 22, 2014).
Harte Gold also announced the issuance of 750,000 stock options to acquire common shares of Harte Gold to Consultants currently working on the project. The stock options are exercisable at $0.30 per common share and expire July 31, 2019.
About Harte Gold Corp.
Harte Gold Corp. is focused on the exploration and development of its 100% owned Sugar Zone property and is currently permitting an advanced exploration program for the Sugar Zone Deposit. The Sugar Zone property is located 60 kilometres east of the Hemlo Gold Camp and contains an NI 43-101 compliant Indicated Resource of 980,900 tonnes, grading 10.13 g/t for 319,280 ounces of contained gold (uncapped) and an Inferred Resource of 580,500 tonnes, grading 8.36 g/t Au for 155,960 ounces of contained gold (uncapped). Harte also holds the Stoughton-Abitibi property located on and adjacent to the Destor-Porcupine Fault Zone in close proximity to the 2.5 million ounce Holt-Holloway Gold Mine in the Timmins, Ontario Porcupine gold camp.