Some good news for a local mine, as Harte Gold has announced a financing package that should let it reopen the Sugar Zone Mine.
The Toronto-based mining company says it has entered into a binding term sheet with Appian Capital Advisory LLP for up to $30-million in financing in exchange for 9.5-million shares, an $18.5-million US credit facility, and a 0.5 percent net smelter royalty.
That will be used to reopen the White River mine in mid-July, taking a phased approach that will start with backfill and select mining operations, leading to mill operations late this month, once a sufficient stockpile's developed.
Harte's dropped its old production target for the year - now hoping to see 20,000 to 24,000 ounces in 2020, leading to 60,000 to 65,000 next year - though it expects a return to 800 tonnes per day will cost about $35-million.
The company's also moving from contract mining to owner-operator mining - expected to cut costs, increase efficiency, and improve long-term sustainability of the operation - while preparing a feasibility study to see if it could use the Sugar and Middle Zones to reach 1200 tonnes per day.