Eagle Plains Closes $890,000 Financing
Eagle Plains Closes $890,000 Financing
Cranbrook, BC; August 3rd, 2023: Eagle Plains Resources Ltd. (TSX -V:”EPL”), (“the
Company”) announces that the Company has closed a non-brokered flow-through private placement
to arms-length and non-arms-length investors as announced on July 20th, 2023. Each unit is priced at
$.20 per unit, consisting of a flow -through common share and one-half non-flow-through common
share purchase warrant, each whole warrant exercisable at $. 30 CDN for a 24 -month period (“the
Units”).
As reported on July 21st, 2023 the Company closed a first tranche consisting of CDN $158,000 through
the sale of 790,000 Units. Eagle Plains has now closed subscriptions for a total of CDN $888,300
through the sale of 4,441,500 Units.
The common share purchase warrants are subject to an accelerated expiry at the option of the Company
if the published closing trade price of the common shares on the TSX Venture Exchange is greater than
or equal to $.50 for any 20 consecutive trading days, in which event the holder may be given notice
that the warrants will expire 30 days following the date of such notice. The common share purchase
warrants may be exercised by the holder during the 30 day period between the notice and the expiration
of the common share purchase warrants.
Finder’s fees of $13,685 relating to the financing were paid to registered dealers or eligible arms-length
third parties involved in the financing. Certain directors and in siders of the Company participated in
the financing with the majority of subscribers being existing Eagle Plains security-holders.
Proceeds from the sale of U nits will be used to fund exploration of the Vulcan project and/or the
company's various projects in British Columbia, Saskatchewan and Yukon. Flow -through funds will
qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for
the 2023 taxation year.
Additional Financing Disclosure Information
Certain subscribers under the Offering are considered to be a "related party" of the Company, and have
subscribed for an aggregate of 415,000 Units for gross proceeds of $ 83,000. Each subscription by a
"related party" of the Company is conside red to be a "related party transaction" for purposes of
Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI
61-101") and Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the TSX
Venture Exchange. The Company is relying on exemptions from the formal valuation and minority
shareholder approval requirements available under MI 61 -101. The Company is exempt from the
formal valuation requirement in section 5.4 of MI 61 -101 in reliance on sections 5.5(a) of MI 61 -101
as the fair market value of the transaction, insofar as it involves interested parties, is not more than the
25% of the Company's market capitalization. Additionally, the Company is exempt from minority
shareholder approval requirement in section 5.6 of MI 61 -101 in reliance on section 5.7(a) as the fair
market value of the transaction, insofar as it involves interested parties, is not more than the 25% of
the Company's market capitalization. The Offering was approved by th e board of directors of the
Company.
Iron Range Option Agreement Amendment
Eagle Plains and its ’ partner (a n arm’s length private Alberta company) , (the “Company”), have
amended the Iron Range option agreement as announced May 5th, 2020. Under the revised terms, the
Company’s exclusive right to earn up to a 60% interest in the Iron Range Project (the “Project”) from
Eagle Plains by incurring $3,500,000 in exploration expenditures and making $250,000 in cash
payments to Eagle Plains has been extended fro m five years to six years. The Company retains the
right to increase its interest to 80% by making a one-time cash payment of $1,000,000 to Eagle Plains.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
For further information on EPL, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: [email protected] or visit our website at http://www.eagleplains.com
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of Property titles, potential mineral recovery processes, etc. Forward-
looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such statements.