The owner of White River's gold mine has entered creditor protection amid a "stalking horse" bid for the company.
Harte Gold filed for an Initial Order under the Companies' Creditors Arrangement Act yesterday, with the Ontario Superior Court granting that, as well as an initial advance of $400,000 under a financing agreement announced at the same time as the filing - that agreement would see Harte loaned up to $10.8-million to continue operations at the Sugar Zone Mine.
While announcing the filing, Harte also announced it had entered into a subscription agreement with a numbered company that is a wholly-owned but indirect subsidiary of Silver Lake Resources Limited, with plans to seek approval for a sale and investment solicitation process using that agreement as a "stalking horse" to provide interested parties the opportunity to submit superior proposes - if that bid wins out, the numbered company would become Harte's sole shareholder, though Harte warns there won't be recovery for holders of existing equity interests unless the successful bid "provides significantly higher value" than the subscription agreement, which it calls the "culmination" of Harte's Strategic Review Process.