Currently viewing Global edition

Appian on the march at Harte as Roman exits

Ontario gold miner Harte Gold has reiterated its intention to raise more equity capital in the next few months “to address short term working capital and operational needs” as it seeks new leadership and ramps up production at Sugar Zone. Harte said it was monitoring the market after announcing Canada’s Echelon Wealth Partners had terminated a C$6 million financing deal.
Appian on the march at Harte as Roman exits Appian on the march at Harte as Roman exits Appian on the march at Harte as Roman exits Appian on the march at Harte as Roman exits Appian on the march at Harte as Roman exits

Sugar Zone in Ontario, Canada

Staff reporter

Its share price was up 3% Wednesday at C32c, capitalising the company at $196 million. The shares are down about 25% since the start of the year.

Harte expects to announce a replacement for long-serving CEO and president Stephen Roman by the end of October. The company is also looking for a new chief financial officer and chief operating officer. Directors Fergus Kerr and Richard Faucher are exiting the board.

Key shareholder Appian Natural Resources Fund has a US$7.5 million non-equity finance facility on standby for Harte, which said it expected to "have projected positive cash flow generated in Q4 2019 and beyond".

Private equity fund Appian is overseeing the recruitment process "as per terms of a new agreement" between the parties that also has Appian being issued 3.95 million warrants to buy Harte shares at 35c/share up to August 28, 2022. Appian board nominee Michael Scherb is chairing Harte's new governance committee.

Appian "will make recommendations on the selection of management and board candidates that will best serve the company to achieve operational success and grow the company's profile in the capital markets", Harte said in a statement.

The company is looking to increase Sugar Zone production to more than 60,000oz next year, and ultimately about 95,000ozpa, after declaring commercial production at the start of 2019.