Eagle Plains Provides Additional Disclosure on Recently Announced Completed Flow-Through Financing
Eagle Plains Provides Additional Disclosure on Recently Announced
Completed Flow-Through Financing
Cranbrook, BC; July 15th, 2022: Eagle Plains Resources Ltd. (TSX -V:”EPL”), (“the
Company”) announces that the Company has closed a non-brokered private placement to
arms-length and non-arms-length investors as announced on June 30th, 2022. Eagle Plains
has closed subscriptions for a total of 7,571,058 flow-through units at a price of $.17 CDN
per unit for gross proceeds of $CDN 1,287,080. E ach unit consists of a flow-through
common share and one-half non-flow-through common share purchase warrant, each whole
warrant exercisable at $.25 CDN for a 24-month period.
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 $3,570 were paid to registered dealers or eligible arms-length third parties
involved in the financing. Certain directors and insiders of the Company participated in the
financing with the majority of subscribers being existing Eagle Plains security-holders.
Proceeds from the sale of units will be used to fund exploration of the Company's various
projects in British Columbia and Saskatchewan and are expected to be renounced for the
2022 taxation year as Canadian Exploration Expenses as defined in the Income Tax Act.
Additional Disclosure Information
Certain subscribers under the Offering are considered to be a "related party" of the Company,
and have subscribed for an aggregate of 1,250,000 Flow -Through Units for gross proceeds
of $212,500. Each subscription by a "related party" of the Company is cons idered 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 th e TSX Venture Exchange.
Pursuant to MI 61-101, the Company will file a material change report providing disclosure
in relation to each "related party transaction" on SEDAR under the Company’s issuer profile
at www.sedar.com. The Company did not file the material change report more than 21 days
before the expected closing date of the Offering as the details of the Offering and the
participation therein by each "related party" of the Company were not settled until shortly
prior to the closing of the Offering, and the Company wished to close the Offering on an
expedited basis for sound business reasons. 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 the board of directors of
the Company. No special commit tee was established in connection with the Offering, and
no materially contrary view or abstention was expressed or made by any director.
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. Eagle Plains also holds significant
royalty interests in western Canadian projects, covering a broad spectrum of commodities
on projects controlled by Cameco Corp., Iso Energy Corp., Denison Mines Co rp., Skeena
Resources Ltd. and Alexco Resource Corp./Banyan Gold Corp., among many others.
Management’s focus is to advance its most promising exploration projects. 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 2011-2021 on Eagle Plains -related projects exceed $27M, the majority
of which was funded by th ird-party partners. This exploration work resulted in
approximately 42,000m of diamond -drilling and extensive ground -based exploration work
facilitating the advancement of numerous projects at various stages of development.
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.