Flashback to three years ago; now we've got Hansel, Snow White, and a few dwarves having dinner. Gretel's been missing for over 20 years, the dwarves are losing their mine so Hansel offers to buy it, thinking Gretel might be lost down there.
The owner refuses to sell, citing a discovery of an ancient evil in its depths. Hansel blithely ignores this info and drugs him, at which point the man disappears. Ok, makes sense to me.