Eagle Plains Proposes Spin-Out of Saskatchewan GOLD Assets Through Plan of Arrangement
EAGLE PLAINS PROPOSES SPIN-OUT OF SASKATCHEWAN
GOLD ASSETS THROUGH PLAN OF ARRANGEMENT
Cranbrook B.C., October 23rd, 2017: The Board of Directors of Eagle Plains Resources Ltd. (TSX-
V:EPL) (the "Company" or "Eagle Plains") is pleased to announce a proposed arrangement to
reorganize certain Saskatchewan mineral property assets in an effort to maximize shareholder value.
Under the proposed arrangement, m ineral properties targeting primarily gold will be transferred into a
new company, incorporated under the name Taiga Gold Corp. (“Taiga”)
The arrangement contemplates Eagle Plains shareholders of record on closing of the arrangement
receiving one share of Taiga for every two Eagle Plains share s held (subject to various approvals and
conditions met). Taiga would apply to have its shares listed on the TSX Venture Exchange. Eagle Plains
is expected to retain approximately 20% of the outstanding shares of Taiga. It is anticipated that the
arrangement will be completed in early 2018 and would not trigger a taxable event.
The reorganization is designed to improve the identification and valuation of specific Eagle Plains’
properties, to enhance Eagle Plains' ability to div est specific properties through simpler corporate
ownership, and to enable Taiga to separately finance and develop its various assets, selectively reducing
Eagle Plains’ stock dilution.
The rationale for the formation of Taiga is to allow for the oversigh t, direction and financing of the
Fisher project (currently under option to SSR Mining Inc., formerly Silver Standard Resources Inc.)
(“SSRM”) (TSX: SSRM) (NASDAQ: SSRM) , the Chico project (currently under option to Aben
Resources Ltd), and the Orchid, Leland and SAM projects-all currently owned 100% by Eagle Plains.
The formation of Taiga will allow Eagle Plains to continue to focus on its core business model of
acquiring and advancing grassroots base- and precious-metal exploration properties.
Should the proposed reorganization go ahead, it would be subject to shareholder approval by resolution
approved by not less than 66 2/3 % of votes cast. The Company expects to present the matter to
shareholders at a special meeting expected to be called in Q1 of 2018. The reorganization will be subject
to approval of the Court of Queen's Bench of Alberta and to acceptance by the TSX Venture Exchange.
Further particulars will be announced in due course.
See Taiga project location map
Fisher Project
The Fisher project is located 125 km east of La Ronge, Saskatchewan. SSRM is currently in the second
year of a four -year option agreement whereby SSRM may earn up to an 80% interest in the 34,000 ha
property by completing $4M in exploration expenditures and making $3.3M in cash payments to EPL
(see details below- all figures in Canadian dollars). The Fisher project is contiguous to the north, south
and east with SSRM’s Seabee Gold Operation. SSRM has advised Eagle Plains that surface activities
have been completed and preparations are being made for a winter drilling campaign.
See Fisher area location map
The 2017 surface exploration activity carried out by SSRM consisted of till sampling, soil geochemical
sampling, geological mapping and prospecting. Results were enco uraging, with numerous areas of
elevated gold in soils documented within Fisher property boundaries. A cluster of elevated gold in soil
anomalies correlate to areas of high strain and shearing, significant alteration and quartz veining that
were identified during mapping. The anomalies also coincide with a bifurcation of the Santoy shear
zone, with anomalous values following both branches of the structure. Visible gold was reported in
outcrop at one occurrence . Despite poor exposure, the trend has been trac ed in outcrop over a strike
length of 1.5-2.0 km. Full details of the surface exploration work are expected to be released as they are
obtained by Eagle Plains.
Details of the Fisher Option Agreement
To earn a 60% interest over four years, SSR Mining paid $100,000 to Eagle Plains on signing of the
formal agreement, has agreed to complete $4,000,000 in exploration expenditures and make annual cash
payments of $75,000 for each of the four years of the op tion period. SSRM made the first annual cash
payment of $75,000 and funded the $400,000 exploration program completed by Eagle Plains in 2016,
which is included in the $4,000,000 exploration expenditures. Once the 60% earn-in has been completed,
SSRM has a 90-day, one-time option to earn an additional 20% interest (for a total of 80%) by making a
cash payment of $3,000,000 to Eagle Plains, at which time an 80/20 joint venture will be formed to
further advance the property. Eagle Plains will retain a 2.5% Ne t Smelter Return (“NSR”), subject to
reduction on certain claims by underlying NSR agreements. Eagle Plains’ NSR may be reduced by 1% at
any time upon payment of $1,000,000 by the joint venture. In addition, Eagle Plains will receive advance
royalty paymen ts of $100,000 annually from the joint venture until commencement of commercial
production.
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral
projects throughout western Canada. 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. Managements’ current focus is to pr eserve its
treasury while advancing its most promising exploration projects. In addition, Eagle Plains continues to
seek out and secure high -quality, unencumbered projects through research, staking and strategic
acquisitions. Since 2012, Eagle Plains has added to its portfolio a number of new projects exceeding
130,000 ha targeting mainly gold, uranium and base-metals in Saskatchewan, a highly-prospective mining
jurisdiction which was recently recognized by the Fraser Institute as the best place in the world in terms of
Investment Attractiveness. 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.
Expenditures from 2011 -2016 on Eagle Plains -related projects were approximately $16.0M, which was
funded by Eagle Plains and , for the most part, by third -party partners. This exploration work resulted in
approximately 15,000 m of diamond-drilling and extensive ground-based exploration work facilitating the
advancement of numerous projects at various stages of development.
Technical aspects of this news release have been reviewed and approved by Jarrod Brown, P.Geo.
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.