GWA Group Ltd V.GWA

RE:RE:RE:RE:14% drop today

[Tim2Agami]

Fredfudpucker00 wrote: Tim,why would Harte need to shut down ? They have DIP financing agreement up to $10.8 million to fund operations through CCAA proceedings.

Quite right. It's still functioning as an ongoing concern pending the conclusion of CCAA proceedings next week. And any available cash for payroll and severance (let alone legal fees) is trickling to nil in the meantime.

After that any "need to shut down" will be at the discretion of 100002583 Ontario Inc, Bids will be open for "the best available transaction".

Currently the AISC costs are averaging well over US $2,000 an ounce.  Is that good enough to designate it as an attractive going concern in a $1750 pog environment?

And will the contractors and creditors just leave their equipment in the camp?

Or will those with crystal balls see otherwise and, at best, buy and mothball the operation, and come back later and reignite the fuse when POG improves enough to justify mining the grades, sketchy enough, but whose value can remain underground waiting that day,

This remains to be seen, of course, but for the next few hours, days, or weeks, you are right, there is no need to shut down.  Stay tuned. 

At a hearing scheduled for December 16, 2021, Harte Gold will seek the Court's approval of the DIP Financing Agreement and a sale and investment solicitation process ("SISP") and authority to use the Subscription Agreement as a "stalking horse" in the SISP in order to provide interested parties with the opportunity to submit superior proposals and to enable Harte Gold to determine the highest and best available transaction for the Company and its stakeholders.

Unless the successful bid at the conclusion of the SISP provides for significantly higher value than the Subscription Agreement, there will be no recovery for holders of existing equity interests in the Company.

https://stockhouse.com/news/press-releases/2021/11/01/harte-gold-reports-third-quarter-2021-results-and-provides-operational-update

https://stockhouse.com/news/press-releases/2021/12/07/harte-gold-announces-granting-of-initial-order-under-companies-creditors