Hanstone Gold Announces Private Placement Financing of up to $4 Million

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VANCOUVER, British Columbia, May 10, 2021 (GLOBE NEWSWIRE) -- Hanstone Gold Corp. (TSXV: HANS) (FSE: HGO) ("Hanstone" or the "Company"), announces that it has entered into an agreement with Research Capital Corporation, as sole agent and bookrunner (the “Agent”), in connection with a best efforts private placement for aggregate gross proceeds of up to $4,000,000 (the “Offering”), consisting of: (i) units of the Company (the “Units”) at a price of $0.40 per Unit, and (ii) flow-through units of the Company (the “FT Units”) at a price of $0.44 per FT Unit.

Each Unit will be comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each FT Unit shall consist of one Common Share of the Company which will qualify as a “flow-through share” (within the meaning of the Income Tax Act (Canada)) (each, a “FT Common Share”) and one Warrant.

Each Warrant shall be exercisable to acquire one Common Share (a “Warrant Share”) at a price of $0.47 per Warrant Share for a period of 24 months from the Closing Date (as defined below).

The Company intends to use the net proceeds from the Offering for its ongoing exploration drilling program, working capital requirements and other general corporate purposes. The gross proceeds received by the Company from the sale of the FT Units 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 Units with an effective date of no later than December 31, 2021.

The Agent will have an option (the “Over-Allotment Option”) to offer for sale up to an additional 15% of the number of Units and FT Units sold in the Offering, which Over-Allotment Option is exercisable, in whole or in part, at any time up to 48 hours prior to the Closing Date.

The Units and FT Units to be issued under the Offering will be offered by way of private placement in each of the provinces of Canada, and such other jurisdictions as may be determined by the Company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.

The Offering is scheduled to close on or about the week of June 7, 2021, or such date as agreed upon between the Company and the Agent (the “Closing Date”). The closing of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the “Exchange”). The Common Shares, FT Common Shares and Warrants comprising the Units and FT Units, the Warrant Shares, Compensation Options (as defined below), and the securities underlying the Compensation Options to be issued under the Offering will have a hold period of four months and one day from the Closing Date.