Harte Gold Corp. T.HRT

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Silver Lake Resources Ltd (ASX: SLR) Page 1 of 2






22 November 2021

Silver Lake Resources
Limited

Suite 4, Level 3
South Shore Centre
85 South Perth Esplanade
South Perth WA 6151
TEL [phone]
FAX [phone]
ABN 38 108 779 782

Board of Directors:
David Quinlivan
Luke Tonkin
Kelvin Flynn
Rebecca Prain

ASX Code: SLR

ACQUISITION OF HARTE GOLD CREDIT FACILITIES

Silver Lake Resources Limited (“Silver Lake” or the “Company”) advises that it has
acquired credit facilities (the “Facilities”) provided by BNP Paribas (“BNP") to Harte
Gold Corp. (TSX:HRT) (“Harte Gold”).
Harte Gold is a TSX-listed gold mining company which owns and operates the Sugar
Zone mine in Ontario, Canada, with an associated 81,287 hectare land package.
Further information in relation to Harte Gold and the Sugar Zone Mine can be found
on Harte Gold’s website www.hartegold.com.
Facilities summary
The Facilities comprise a US$41.3 million non-revolving term facility and a US$22.0
million revolving facility, each of which are fully drawn, with outstanding interest
of US$2.32 million. Harte Gold entered into a credit agreement in respect of the
Facilities with BNP on 14 June 2019 with the agreement subsequently amended and
restated on 28 August 2020 (as further amended, the “Credit Agreement)1. The
Facilities are secured by a first lien on all the present and future assets, property
and undertaking of Harte Gold.
On 30 July 2021 Harte Gold and BNP entered into a Forbearance Agreement2
pursuant to which BNP agreed, subject to certain terms and conditions, to refrain
from enforcing its rights and remedies under the Facilities and associated credit
documents until 30 September 2021. The forbearance period has been amended and
extended three times and is currently due to expire on 30 November 20213.
Harte Gold has committed various events of default under the Credit Agreement,
including non-payment of certain principal and interest payments4. On expiry of the
forbearance period, unless extended or otherwise amended, Silver Lake will have
the option to exercise its rights under the Facilities and associated documents.
Transaction summary
The transaction was funded out of Silver Lake’s cash reserves and implemented by
way of an assignment of BNP’s rights and obligations as lender under the Credit
Agreement and associated credit documents. The consideration did not exceed the
outstanding principal and interest balance.
Silver Lake intends to work cooperatively with Harte Gold and its stakeholders to
deliver an outcome which will provide the best opportunity to realise the full
potential of the Sugar Zone mine and the associated land package.
1. A redacted version of the Credit Agreement is available on Sedar.com
2. Harte Gold news release 30 July 2021 “Harte Gold enters into Forbearance Agreement with BNPP”
3. Harte Gold news release 1 November 2021 “Harte Gold announces third amendment to Forbearance Agreement
with BNPP & provides update on strategic review”
4. Harte Gold financial statements for the three and nine months ended 30 September 2021