CRANBROOK, BC / ACCESSWIRE / August 24, 2023 / Management of Eagle Plains Resources Ltd. (TSXV:EPL) ("Eagle Plains", or "EPL" or the "Company") is pleased to announce that it has entered into a mineral property purchase and sale agreement (the "Purchase Agreement"), dated effective August 24, 2023, with a wholly-owned subsidiary of Standard Uranium Ltd. ("Standard"),(TSX-V:STND) (OTCQB: STTDF) (Frankfurt: FWB:9SU), pursuant to which Standard will acquire eight additional mineral claims totalling 4,278 hectares contiguous with the recently staked Corvo Project, in the Eastern Athabasca Basin region (the "Acquisition"). Upon completion of the Acquisition, the Corvo Project will comprise 7,989 hectares within ten claims and contain 14.5 km of prospective exploration corridors across two trends.
Summary of Purchase Agreement
Pursuant the terms of the Definitive Agreement, the aggregate purchase price payable by Standard Uranium to the Eagle Plains consists of (a) 1,250,000 common shares of the Company, (the "Consideration Shares") and (b) the granting of a net smelter returns royalty of 2.5% (the "NSR Royalty") to Eagle Plains on all Corvo claims effective as of the commencement of commercial production. The NSR Royalty is subject to a buydown right in favour of Standard Uranium pursuant to which Standard Uranium may extinguish 1% of the NSR Royalty in exchange for payment of $1,000,000, thereby reducing the NSR Royalty to 1.5%. The Consideration Shares will be subject to a four month hold period as prescribed by applicable securities laws.
With the expansion of the Corvo Project, Standard will have ownership interests in seven projects totalling over 75,895 ha across the uranium-rich Athabasca Basin.
Completion of the Acquisition remains subject to the approval of the TSX Venture Exchange. The Company and Eagle Plains are at arms-length, and no finders' fees or commissions are payable by the Company in connection with the Acquisition. Upon issuance, the Consideration Shares will be subject to a four month hold period as prescribed by applicable securities laws.
"Completing this deal with Eagle Plains will add significant value to the Corvo Project, delivering more than 5 kilometres of additional prospective exploration corridors in addition to several more historical uranium showings," said Sean Hillacre, President and VP Exploration for Standard. "The fact that the project is road-accessible year-round compliments the strong geoscience attributes of the project, drawing on the analogy of the near-by Gemini Mineralized Zone. With this addition to the claims staked by our team, Corvo is now a highly optionable project with size and strong geological characteristics prospective for uranium mineralization."
Tim Termuende, P.Geo. President and CEO of Eagle Plains commented recently: "we are pleased to have concluded a mutually beneficial deal with Standard on their Corvo Project. Standard brings to the table a solid management team while Eagle Plains will maintain significant upside exposure to the project through its sizeable shareholdings in Standard and the retention of an NSR. By vending non-core claims at Corvo, Eagle Plains stays true to its proven model as a project generator and will continue its' focus of researching, identifying and acquiring new exploration opportunities in western Canada."
See Corvo Project Location Map here
Eagle Plains Announces Application to Extend Warrant Expiry
Eagle Plains has made application to the TSX Venture Exchange for approval and acceptance to amend the term of 1,526,000 outstanding common share purchase warrants which were issued in connection with a non-brokered private placement closed on September 25th, 2020 (see EPL news release dated September 25, 2020). The warrants have a current expiry date of September 25th, 2023.
The 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.
Eagle Plains has applied to extend the expiry date for an additional 12 months to a revised date of September 25, 2024. The exercise price and acceleration clause of the warrants will remain unchanged, at 30 cents per warrant.
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 Taiga Gold Corp. being notable examples. Eagle Plains latest spinout, Eagle Royalties Ltd. (CSE:"ER") was listed on May 24, 2023, and holds a diverse portfolio of royalty assets throughout western Canada.
Eagle Plains' core business is acquiring grassroots critical- and precious-metal exploration properties. 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.
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 diamond-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
"Tim J. Termuende"
President and CEO
For further information on EPL, please contact Mike Labach at 1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com 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.
SOURCE: Eagle Plains Resources Ltd.
