Subject to approval by the Toronto Stock Exchange, both mining and factories are expected to resume by the end of the month
Harte, which started production on its 79,335 hectare sugar property last year, announced on March 30 that it will cease operations until further notice, citing the urgency of the coronavirus and the wish to the company to “guarantee the health and safety of its employees and the surrounding area.” communities. ”
“A phased restart approach has been established and will begin with backfilling and certain mining operations,” the company said today. “Factory operations would resume at the end of July once sufficient stock is developed. ”
“For 2021, the company would expect significant growth in production during production levels in 2019 and 2020, resulting from entry into higher grade areas, higher mining production and l improvement in mine development rates. ”
Harte plans to use paste backfill this year to improve mining efficiency and increase flexibility.
Backfilling with pulp consists of pumping stiffened mining residues underground to fill work sites where veins of precious metals have been removed.
Harte’s new fiscal boost comes from the Appian Natural Resource Fund, a UK-based private equity firm that already controls nearly a quarter of Harte’s issued and outstanding common shares.
Before the deal with Appian can be made, Harte needs the Toronto Stock Exchange to accept a financial hardship exemption.
“The company continues to experience serious financial difficulties,” said Harte in a press release today.
“Given the company’s current financial situation, in the absence of finalization of the proposed transaction, its ability to continue its activities and meet its obligations as they come to an end cannot be assured in the short term. ”
“The proposed transaction is reasonable and provides the only transaction that the company can reasonably expect to execute in order to meet the immediate and significant capital needs of the company. ”
The Sugar Zone mine is Harte’s only source of income.
Other Harte Canada Day disclosures:
- it hopes to bring combined production to 1,200 tonnes per day in its sugar and intermediate zones. When operations were halted this spring, the company was producing 800 tonnes per day
- Harte plans to resume exploration this summer in selected target areas, and drilling of exploration targets near the mine will begin in the fourth quarter
- the company is poised to become owner-operator by the end of the year, abandoning its mining contract with Redpath Mining of North Bay. This is expected to reduce operating costs and increase planning flexibility and efficiency in the management of the mining fleet