Harte Gold Corp. T.HRT

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3.SUBSEQUENT EVENTSThe Special Shares issued to Appian were converted to 49,177,777 common shares on July 25, 2019.On July 22, 2019, the Company entered into an underwriting agreement on a bought deal basis with Echelon Wealth Partners Inc. (“Echelon”) for 20,000,000 flow-through common shares at a price of $0.30 per common share for gross proceeds of $6,000,000. Echelon will receive a cash fee of 5% plus warrants to purchase up to 5% of the common shares sold, with each warrant exercisable at a price of $0.30 per common share for 18 months. The Company also granted Echelon an over-allotment option of upto 15% of the underwritten common shares, or up to 3,000,000 additional flow-through common shares. In connection with their original subscription agreements, Appian and Orion Mine Finance Fund II LP (“Orion”) have the option of acquiring additional common shares at the time of any new equity issuance, so as to maintain their pro rata interest in the common shares at the time. Each of Appian and Orion have been provided with notices related to the flow-through common share offering, giving them the option to acquire up to the number of common shares to maintain their current ownership percentages of 25.3% and 6.6% respectively. Neither party has indicated its intention in this regard.Appian has advised the Company that it believes the number of options issued in recent years exceeds the 6% amount under its subscription agreement (see note15). The Company is investigatingthis matter and may provide Appian participation rights to acquire common shares should it conclude that such limit has been exceede