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Harte Gold has forbearance agreement with BNP Paribas extended

Construction at Sugar Zone, the first new mine in the Hemlo gold camp in more than 30 years. (Image courtesy of Harte Gold)

Harte Gold (TSX: HRT) has been offered reprieve by creditor BNP Paribas as the parties have agreed to amend their forbearance agreement, which was first announced on July 30, 2021.

Under the amended agreement, BNP has agreed to extended the date to which it will refrain from enforcing its rights and remedies from September 30 to October 15, subject to certain terms and conditions.

The amended agreement provides for the continuation of Harte’s strategic review process, first initiated in June 2021. 

The troubled gold miner operates the Sugar Zone mine in Ontario, which entered commercial production in 2019 and is estimated to have mine life of approximately 13 years.

Earlier this year, the company lowered its full-year production guidance by 10,000 ounces to 50,000-55,000 ounces, but cautioned that this target may not be achieved without additional funding.

Harte Gold’s stock was down 9.0% by midday Friday on the latest development, giving the company a market capitalization of C$48.2 million ($38.1m).