Hanstone Closes Loan Transaction

Executive Summary

• Hanstone Gold Corp. entered into an amended and restated loan agreement to borrow up to $300,000 from an affiliate of director Mr. Gurbakhshish “Bob” Hans.
• The new loan adds to past loans totaling $2,025,000, bringing total borrowed funds under the agreement to $2,325,000.
• All principal amounts and accrued interest (15% per annum) are secured by a first‑priority security interest in all present and after‑acquired property of the company; repayment is due on or before August 1 2027.

Key Details

• Loan Amount: Up to $300,000 (Principal).
• Total Loaned Funds under Agreement: $2,325,000 (Past Loans $2,025,000 + new Principal $300,000).
• Lender: Affiliate of Mr. Gurbakhshish “Bob” Hans, a director of Hanstone.
• Interest Rate: 15% per annum, calculated and payable annually in arrears on both past amounts and the new principal.
• Security: Perfected first‑priority security interest in all present and after‑acquired property of Hanstone Gold Corp.
• Repayment Terms:
• Past Loan Amounts repayable on August 1 2027.
• New Principal repayable at the earlier of (i) written demand by the Lender, or (ii) August 1 2027.
• Use of Proceeds: General corporate purposes approved by Hanstone’s board and the Lender.
• Regulatory Exemptions:
• Exempt from MI 61‑101 valuation requirement (Hanstone securities not listed on specified markets).
• Exempt from minority shareholder approval because loan is non‑convertible and on commercial terms no less advantageous than arm‑length financing.
• Approvals: Independent directors approved the loan; material change report timing deemed reasonable given exemptions.

Notable Quotes

(No direct quotes were provided in the release.)