Appian Capital Advisory LLP divested its 2% net smelter return royalty and its subordinated credit facility (SCF) in Harte Gold to Silver Lake Resources, representing what it called a “positive outcome for Appian’s investors.”
Under the terms of the transaction, Silver Lake will acquire the Royalty for $22 million in Silver Lake shares, following Appian’s original acquisition in December 2019 for $9.5 million. Silver Lake will also purchase the SCF for $33.4 million in cash, which represents a 15% premium to Appian’s principal investment of $28 million in July 2020.
This includes the $28 million principal, a 115% early redemption charge of $4.2 million, $1.2 million in accrued interest and an additional approximately $680,000 to cover technical consulting and legal fees.
Harte Gold Corp., in connection with its creditor protection proceedings under the Companies’ Creditors Arrangement Act (CCAA) and its previously announced sale and investment solicitation process, completed the transaction with Ontario and a subsidiary of Silver Lake Resources Ltd. The agreement was approved by the Ontario Superior Court of Justice on January 28.
Following completion of the transaction, all of the previously issued and outstanding common shares of the company have been canceled without consideration, and Harte Gold became a wholly-owned subsidiary of the investor and emerged from the CCAA proceedings.
