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drbubb

NGD / Newgold. Playing bounce in 2018's weakest

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On 11/7/2019 at 6:38 AM, drbubb said:

BOT again recently NGD stocks & calls below my exit price.

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I sold 80% at  a profit in the small rally. keeping some 0.50 calls... but may reload soon.

Third Quarter and Nine-Month Highlights

  • All-in sustaining costs (AISC)1,2 of $1,318 per gold eq. ounce for the quarter and $1,161 for the nine-month period. AISC for the year are expected to achieve the low-end of the annual guidance of $1,330 to $1,430 per gold eq. ounce as sustaining capital at Rainy River is expected to be below annual guidance.
  • Net loss from continuing operations for the quarter was $25 million ($0.04 per share) and $74 million ($0.13 per share) for the nine-month period.

More Punishment > on the RISE in Costs
0.8541 - 0.0776, -8.33% 

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New Gold to make a strategic investment in Harte Gold

Kitco News |

(Kitco News) - Harte Gold (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) announced today that New Gold (TSX:NGD) has agreed to make a strategic investment in Harte Gold.

HARTE GOLD ANNOUNCES $24.8 MILLION STRATEGIC INVESTMENT BY NEW GOLD AND INDICATIVE PROPOSAL TO RESCHEDULE SENIOR DEBT PAYMENTS

Harte Gold Corp. has noted that New Gold Inc. (TSX: NGD) has agreed to make a strategic investment in Harte Gold. The investment, by way of a private placement subscription by New Gold of 154,940,153 common shares of the company at a price of 16 cents per share, will result in Harte Gold raising total gross proceeds of approximately $24.8-million and provide New Gold with a 14.9-per-cent interest in the company's pro forma issued and outstanding common shares. The company is also pleased to announce that it has received a non-binding indicative proposal from BNP Paribas to reschedule approximately $50-million of the scheduled amortization payments under the company's senior debt facility with BNP, which would provide Harte Gold with significantly more financial flexibility over the next two years. The company anticipates the closing of the strategic investment to occur on or about March 24, 2021, and to negotiate documentation with BNP in early Q2 2021.

Highlights of the strategic investment:

 

  • Validation of the Sugar zone investment thesis by a credible strategic party;
  • Strengthens the shareholder registry with the introduction of New Gold;
  • Investment price of 16 cents per common share represents a premium of approximately 15 per cent over the 20-day volume weighted average price of the common shares of the company;
  • Net proceeds will be used primarily toward accelerated mine development, planned expansion and the scheduled March 31, 2021, $3.3-million (U.S.) debt payment to BNP.

Highlights of debt refinancing proposal:

  • No further debt payments would be required to be made in 2021 after the scheduled March 31, 2021, payment;
  • A total of approximately $50-million in debt payments would be deferred in 2021 and 2022;
  • Strengthens Harte Gold's liquidity and significantly reduces associated refinancing risk, allowing the company to focus on continued growth of the operations;
  • The maturity of the BNP term loan would be extended from June, 2024, to June, 2025, and the maturity of the revolving loan would be extended from June, 2022, to June, 2023.

Frazer Bourchier, president and chief executive officer of Harte Gold, commented:

"We are pleased to welcome New Gold as a strategic investor. New Gold's investment represents more than just a significant financing -- it is an endorsement of the potential of the Sugar zone mine and property, and a vote of confidence that Harte Gold's operational team will continue to deliver on our impending growth strategy...

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