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VANCOUVER, British Columbia, Dec. 22, 2021 (GLOBE NEWSWIRE) -- Hanstone Gold Corp. (TSXV: HANS) (FSE: HGO) ("Hanstone" or the "Company"), is pleased to announce that, effective December 23, 2021, it will close a non-brokered private placement (the “Offering”) under which Hanstone will raise aggregate gross proceeds of $772,500.
The Offering consists of the issuance of: (i) an aggregate of 1,395,000 units of the Company (the “Units”) at a price of $0.20 per Unit for gross proceeds of $279,000, and (ii) an aggregate of 1,974,000 “flow-through” common shares of the Company (the “FT Common Shares”) at a price of $0.25 per FT Common Share for gross proceeds of $493,500. Each Unit is comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant is exercisable to acquire an additional Common Share (a “Warrant Share”) at a price of $0.30 per Warrant Share for 12 months from the date of issuance, provided that if the Common Shares trade at or above $0.40 per share for 10 consecutive trading days, then the expiry date of the Warrants will be automatically accelerated to the date that is 30 days after the date the Company provides an acceleration notice by press release to the holders of the Warrants.
The Company intends to use the proceeds from the Offering for its ongoing exploration drilling program, working capital requirements and other general corporate purposes. The proceeds received by the Company from the sale of FT Common Shares will be used to incur eligible "Canadian exploration expenses" (“CEE”) that are "flow-through mining expenditures" (as such term is defined in the Income Tax Act (Canada)) related to the Company’s Doc and Snip North projects. The Company will renounce such CEE to the purchasers of the FT Common Shares with an effective date of no later than December 31, 2021. The proceeds received by the Company from the sale of Units will be used for working capital requirements and other general corporate purposes.
In connection with closing, the Company will pay finder’s fees of $7,350 and will issue 31,150 non-transferable compensation options, each entitling the holder thereof to purchase one Common Share at an exercise price of $0.30 for 24 months, provided that if the Common Shares trade at or above $0.40 per share for 10 consecutive trading days, then the expiry date of the compensation options will be automatically accelerated to the date that is 30 days after the date the Company provides an acceleration notice by press release to the holders of the compensation options.
The closing of the Offering is subject to the receipt of the approval of the TSX Venture Exchange. The securities issued under the Offering will be subject to a four month hold period expiring April 24, 2022. There is no material fact or material change about the Company that has not been generally disclosed.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.
About Hanstone Gold
Hanstone is a precious and base metals explorer with its current focus on the Doc and Snip North Projects optimally located in the heart of the prolific mineralized area of British Columbia known as the Golden Triangle. The Golden Triangle is an area which hosts numerous producing and past-producing mines and several large deposits that are approaching potential development. The Company holds a 100% earn in option in the 1,704-hectare Doc Project and owns a 100% interest in the 3,336-hectare Snip North Project. Hanstone has a highly experienced team of industry professionals with a successful track record in the discovery of gold deposits and in developing mineral exploration projects through discovery to production.
Ray Marks, President and Chief Executive Officer
For Further Information Contact:
Carrie Howes, Director of Communications, +1-(778)-551-8488, carrie@hanstonegold.com
Or visit the Company’s website at www.hanstonegold.com
Cautionary Statement Regarding Forward Looking Information:
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events, or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified using words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about Hanstone’s business and the industry and markets in which it operates and will operate. Forward-looking information and statements are made based upon numerous assumptions, including among others, the results of planned exploration activities are as anticipated, the price of gold, the cost of planned exploration activities, that financing will be available if needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct Hanstone’s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
