Canstar Resources Inc. has amended its unsecured bridge note with BQS Systematic Equities LP, extending the maturity date to September 16, 2026, and increasing the aggregate principal cap to C$500,000.

The adjustment follows an additional advance of US$70,000 on August 14, 2026, which brought the total outstanding principal under the note to US$241,000. Based on Bank of Canada daily exchange rates applied at the time of each advance, approximately C$162,000 in borrowing capacity remains available under the C$500,000 ceiling. BQS is an entity controlled by J. Paul Austin III, a director of Canstar.

The note was originally issued on July 17, 2026, in the principal amount of US$171,000. Like the initial facility, the amended note bears zero interest, remains unsecured and non-convertible, and carries no fees, bonuses or warrants. Canstar retains the right to repay the principal in whole or in part at any time prior to maturity without penalty.

The bridge financing provides interim working capital while Canstar negotiates the definitive documentation for a previously announced credit facility. If those facility documents are executed and accepted by the TSX Venture Exchange, the bridge note will be repaid in full from the initial credit facility advance and cancelled. Finalizing the facility remains subject to separate board approval and exchange acceptance, and no assurance has been given that the transaction will complete.

Because BQS is controlled by a company director, the note amendment constitutes a related-party transaction under Multilateral Instrument 61-101. Mr. Austin abstained from board deliberations and voting on the matter. The remaining directors determined that the amended terms are no less favorable to Canstar than those available from an arm's-length lender, citing the absence of interest, security, fees or conversion rights. Canstar relied on exemptions from formal valuation and minority shareholder approval requirements.

Canstar holds a portfolio focused on volcanogenic massive sulphide exploration in established mining jurisdictions. The company's flagship Mary March VMS Project covers approximately 122 square kilometres within the Buchans District in Central Newfoundland and is being advanced through an earn-in joint venture with VMS Mining Corporation. VMS Mining advanced an additional C$2 million under an amended funding note in July 2026 to accelerate Phase 2 exploration across the Buchans and Mary March assets. Canstar is negotiating the credit facility documentation while maintaining operations across its portfolio.

Read the full announcement: Canstar Resources Extends Director-Related Bridge Note and Increases Aggregate Principal Cap to C$500,000