Eagle Plains Executes Option Agreement with Canter on Puzzle Lake Project, Saskatchewan
Eagle Plains Executes Option Agreement with Canter
on Puzzle Lake Project, Saskatchewan
Cranbrook, B.C., January 26th, 2023: Eagle Plains Resources Ltd. (TSX -V: “EPL”) and
Canter Resources Corp. (CSE: “CRC”) have executed a formal agreement whereby Can ter
holds the exclusive right to earn a 60% interest in EPL’s 100% -owned Puzzle Lake project by
completing $3,000,000 in exploration expenditures, making $250,000 in cash payments and
issuing 1,000,000 common shares to Eagle Plains over a four -year period (see details below). A
2% NSR is reserved for Eagle Plains, which may be reduced to 1% upon payment by Canter of
$1M. The claims cover an area of 3261ha located in northeastern Saskatchewan, 45km southeast
of Stanley Mission. Access to the property is gained via winter road and/or float plane.
Canter’s proposed acquisition of the Puzzle Lake project is subject to its filing requirements with
the Canadian Securities Exchange. Canter has also decided not to proceed with its Schott Lake
property and has given notice to EPL accordingly.
Puzzle Lake Project Summary
The Puzzle Lake area comprises meta -volcanic units intruded by several phases of the igneous
rocks. Area geology shares similarities in terms of composition and timing to the Pine Lake
volcanic belt which hosts the Santoy-Seabee mine complex located 75 km north of the property.
Furthermore, the project is linked by proximity to a major east -west trending fault (Hartley Lake
shear zone) to the nearby EPL-owned Olson Au project which is under option to SKRR Resources.
All three projects fit into an orogenic -related gold deposit model and are regionally linked by
similar host rock sequences and proximity to the major north-south trending Tabbernor fault.
Considering the highly prospective geology and proximity to other gold-associated projects in the
region, the Puzzle Lake area is conspicuously underexplored, with only regional -scale industry
airborne surveys, and limited government geological mapping and till sampling on record.
The Puzzle Lake Property was identif ied by Eagle Plains in 2020 as a highly prospective gold
property. Data compilation commenced soon after acquisition by staking, and a property -wide
airborne magnetic and VLF -EM survey was completed in 2021. This was immediately followed
up with a dense property-scale lake-sediment geochemical survey and strategic till sampling to test
down-ice regions of prospective geology and other government collected gold-in-till anomalies on
the property. 2021 survey results confirmed overlapping geochemical till and lake sediment
anomalies, including a highly anomalous till gold -grain-count of 21 (and associated Knelson
concentrate analysis of 282 ppb Au). This result, in combination with results of the geological and
geophysical compilations, allowed for the definiti on of three broad target areas for follow -up
detailed prospecting and geochemical surveys. A soil geochemical program was completed in
2022, resulting in the collection of 339 soil samples, with results ranging from trace amounts to a
high of 98 ppb Au. At least 3 anomalous soil geochemical trends have been defined since and are
considered to have geological merit. Planning is underway to follow-up on these anomalous trends
in 2023.
Details of the Option Agreement
The details of the consideration payable are as follows: Canter must conduct exploration
expenditures of $100,000 on or before December 31, 2023; a further $200,000 on or before
December 31, 2024; a further $300,000 on or before December 31, 2025; a further $900,000 on or
before December 31, 202 6; and $1,500,000 on or before December 31, 2027. Canter must also
pay cash consideration of $40,000 on or before December 31, 2023; $50,000 on or before
December 31, 2024; $60,000 on or before December 31, 2025; and $100,000 on or before
December 31, 2026. Canter must make share issuances of 100,000 Shares upon execution of the
Option Agreement; 100,000 Shares on or before December 31, 2023; 200,000 Shares on or before
December 31, 2024; 200,000 Shares on or before December 31, 2025; and 400,000 shares o n or
before December 31, 2026. All share issuances are subject to a hold period of four months and a
day from the date of issuance.
Qualified Person
Charles C. Downie, P.Geo., a “qualified person” for the purposes of National Instrument 43-101 -
Standards of Disclosure for Mineral Projects, has prepared, reviewed, and approved the scientific
and technical disclosure in the news release. Charles Downie is a director of EPL, and is
independent of Canter.
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains is a well-funded, prolific project generator that continues
to conduct research, acquire and explore mineral projects throughout western Canada. The
Company was formed in 1992 and is the ninth-oldest listed issuer on the TSX-V (and one of only
three that has not seen a roll -back or restructuring of its shares). Eagle Plains has continued to
deliver shareholder value over the years and through numerous spin -outs has transferred over
$100,000,000 in value directly to its shareholders, with Copper Canyon Resources and recently
Taiga Gold being notable examples.
The Company is committed to steadily enhancing shareholder value by advancing our diverse
portfolio of projects toward discovery through collaborative partnerships and development of a
highly experienced technical team.
In late 2022 Eagle Plains announced the formation of a separate division within the Company;
Eagle Royalties Ltd. (“ER”) which will hold many of Eagle Plains’ diverse portfolio of royalty
assets. The restructuring will enhance the valuation of Eagle Plains’ extensive royalty interests,
enabling ER to market and develop its royalty assets while seeking additional royalty acquisition
opportunities. Eagle Plains’ royalties cover a broad spectrum of com modities on projects
controlled by Cameco Corp., Iso Energy Corp., Denison Mines Corp., Skeena Resources Ltd. and
Hecla Mining Co./Banyan Gold Corp., among others. Eagle Plains will continue to focus on its
core business model of acquiring and advancing grassroots critical- and precious-metal exploration
properties.
Expenditures from 2011 -2022 on Eagle Plains -related projects exceed $30M, the majority of
which was funded by third -party partners. This exploration work resulted in approximately
45,000m of d iamond-drilling and extensive ground -based exploration work facilitating the
advancement of numerous projects at various stages of development.
Throughout the exploration process, our mission is to help maintain prosperous communities by
exploring for and discovering resource opportunities while building lasting relationships through
honest and respectful business practices.
On behalf of the Board of Directors of Eagle Plains
“Tim J. Termuende”
President and CEO
On behalf of the Board of Directors of Canter
“Hani Zabaneh”
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 https://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.