- Silver Lake Resources (SLR) has purchased the credit facilities provided by BNP Paribas to Harte Gold for the Sugar Zone mine in Canada
- The facilities include a US$41.3 million (A$57 million) non-revolving term facility and a US$22 million (A$30 million) revolving facility
- Both facilities are fully drawn with an outstanding interest of US$2.32 million (A$4.4 million)
- Silver Lake intends to work with Harte Gold to provide the best opportunity for the Sugar Zone mine
- On the market today, Silver Lake was down 3.49 per cent and trading at $1.80 per share
Silver Lake Resources (SLR) has purchased the credit facilities provided by BNP Paribas to Harte Gold.
Harte Gold is listed on the TSX and owns and operates the Sugar Zone mine in Ontario, Canada.
The facilities include a US$41.3 million (A$57 million) non-revolving term facility and a US$22 million (A$30 million) revolving facility.
Both facilities are fully drawn with an outstanding interest of US$2.32 million (A$4.4 million).
The loaned money is “secured by a first lien on all the present and future assets, property and undertaking of Harte Gold.”
Earlier this year, BNP and Harte Gold signed a forbearance agreement, which BNP agreed to refrain from enforcing its rights and remedies under the facilities and associated credit documents until September 30, 2021.
However, the forbearance period has been amended and extended three times and is currently due to expire at the end of the month.
The purchase has been funded out of Silver Lake’s cash reserves and implemented by way of assignment of BNP’s rights and obligations as lender. The consideration did not exceed the outstanding principal and interest balance.
Silver Lake intends to work with Harte Gold to provide the best opportunity for the Sugar Zone mine.
On the market today, Silver Lake was down 3.49 per cent and trading at $1.80 per share at 11:49 am AEDT.