Harte Gold Corp. T.HRT

Primary Symbol: HRTFF

Metals & Mining Gold

Harte Gold Corp is engaged in the acquisition and exploration of mineral resource properties. It is focused on gold properties located in the province of Ontario, Canada. The company's exploration projects consist of sugar zone property and Stoughton Abitibi property. The Sugar Zone Property is located approximately 80 kilometers east of the Hemlo gold camp on the north shore of Lake Superior. It includes approximately 4 mining leases and 336 unpatented mining claims. In addition, it also consists of approximately 29,435 hectares within the Sault Ste. The Stoughton Abitibi property is located approximately 110 kilometers east of Timmins and 50 kilometers northeast of Kirkland Lake.

EXPM:HRTFF - Post by User

Harte Gold Corp.

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Post by BigIsBeston Aug 15, 2019 12:10am

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Post# 30030194

Quick thoughts on the news

My quick thoughts on the information released today:

The hedging of 79,000 oz of gold is necessary to protect shareholders from losing the company. If gold dropped below $1,300 for a sustained period then it is possible that the company would not be able to pay it debts as they fall due. Hedging provides some protection against the worst-case scenario. Remember the company has put in place call options at up to US$1,399. Therefore, my take is that the maximum loss the company can incur is the amount already in the financial statements i.e C$10.57m (which is roughly 79,000 oz at US$99, being $1,399 minus $1,300)
Exploration is the key now. A profitable producing mine is very important but new ounces found in the next 12 months are crucial.
The cost of the Appian and Sprott loans were massive. In simple terms, $24.5m was borrowed from Appian and $30.25m was paid to them – a cost of $5.75m. For Sprott $42.4m was borrowed and $55.9m was paid to them – a cost of $13.5m.
It is so good to be rid of the Appian and Sprott loans.
The BNP loan debt repayments ramp up in 2021 ($12.3m) and 2022 ($17.4m plus revolving credit of $20m).
My hope is the plan to discover several million more ounces in the next 12 months and sell the company before the debt repayments in 2021 come due.
The news about the Flat Lake and TNT areas is very exciting. But when will those areas be drilled and how will that be paid for?
Surface drilling at the K7 and Hambleton Lake areas has been budgeted for at $4.3m in 2019 and 2020.

Great progress is being made and exciting times are ahead IMHO. GLTA