Loading ...Silver Lake Resources grabs troubled Harte Gold
Australia’s Silver Lakes Resources (ASX: SLR) said on Friday it had won the bid for Harte Gold, whose sole asset is the three-year-old Sugar Zone mine in Ontario, Canada.
The announcement comes only days after a second potential, anonymous buyer for the troubled gold miner emerged.
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The deal comprises $74.5 million in credit to the buyer, reflecting the value of loans Harte owes the South Perth-based miner. It also involves nearly $22 million out of the money hedge book and accounts associated with the operation of the Sugar Zone, the issuing of Silver Lakes shares at an estimated value of $28 million, and a small cash consideration of up to $3 million, the companies said.
Silver Lake has also entered into an agreement to acquire a combined 2% net smelter royalty on the entire Sugar Zone property, for $22-million payable in Silver Lake shares. The transaction is subject to the successful acquisition of Harte Gold, it said.
more https://www.mining.com/silver-lake-resources-grabs-troubled-harte-gold/