Eagle Plains Resources is a Canadian based exploration and mining company with over 35 mineral exploration properties in western Canada.
Eagle Plains has been operating since 1992 and publicly traded since July 1995. The management is made up largely of geologists with a combined 125 years of experience and has a proven ability to develop joint venture partnerships. An in-house team of geologists and technicians enable us to manage this large portfolio of projects.
The primary corporate objective is to enhance shareholder value by making precious and base metal deposit discoveries. To best achieve this objective we employ a risk-averse strategy to this risk-intense business by utilizing joint-venture participation.
We also continue to add to our project portfolio by acquisition of early-stage exploration properties. Click on the link for an explanation of the grass roots exploration process.
Eagle Plains properties include prospects for gold, uranium, silver, copper, molybdenum, zinc, lead, rare earth minerals, gallium and industrial minerals including sodalite and gypsum. Information regarding each of our exploration properties can be found on the projects page. You can sort the properties to be viewed by location, minerallization type and resource type.
The Yellowjacket Gold Project was acquired during the economic downturn of 2008/09 while the majority of the mineral exploration properties were acquired during the prolonged industry downturn in the 1990's and early 2000's. The Yellowjacket had approximately $14 million in capitalization expenditures while seven of the exploration properties had approximately $38 million in exploration expenditures by previous operators.
Eagle Plains utilizes in-house research and a network of prospectors to identify prospective exploration projects, this accounts for the current porfolio of over 35 projects. These were in large part acquired merely for the cost of staking. As a result of holding over 35 mineral exploration properties and with the majority of these under option to other companies, Eagle Plains Resources is considered a successful "Project Generator".
Joint Venture Strategy
Eagle Plains risk-averse exploration strategy is to employ joint venture participation to advance it's portfolio of properties. The intent of this model is to reduce the necessity of EPL share dilution while another company provides exploration funding as part of the option agreement earn-in process on a particular project. A typical option agreement consists of three components; committment to explore between $3-5m over a specified amount of time, payment of a number of their shares to Eagle Plains and payment of a specified amount of cash to Eagle Plains. This joint venture model reduces exposure to the risk of exploration while maintaining a significant interest in the property in the event of a discovery. By combining our in-house mineral exploration expertise with the financial committments of our partners as they earn-in, we add significantly to the annual efforts of our mineral exploration program. Click here for a list of current option arrangements and their details.
Revenue is generated by the company in a number of ways. TerraLogic Exploration Inc. is a wholly owned subsidiary of Eagle Plains which employs our technical team. This subsidiary conducts exploration services for Eagle Plains, our partners and 3rd party companies. This work generates significant revenue. Other sources of revenue include cash and share payments made by other companies to Eagle Plains as part of the earning in process of the option arrangements.
Eagle Plains purchased an office building in Cranbrook, B.C. as it's headquarters and leasable commercial office space. This transaction took place during the general realestate downturn as a result of the economic collapse of 2008. Near the same time Eagle Plains also acquired a farm on the outskirts of Cranbrook and converted it to a geological processing facility, further adding to our revenue generation and reducing the costs to the company for services associated with this.
Below is a chart depicting annual exploration expenditures on Eagle Plains projects by Eagle Plains, our Option Partners and Teck during our Strategic Alliance. Finally, the 3rd party operations amount is the value of work that Terralogic Exploration Inc. has conducted for third parties. Services provided to these third parties create revenue for Eagle Plains but are not expenditures on EPL projects.
Creating Value for Our Shareholders
The next step of our value creation strategy is to spin-off successful exploration projects and developed properties into new companies. This spotlights their value in order to increase shareholder equity and attract interest from producing companies for acquistion. An example of this spin-off strategy was Copper Canyon Resources which was conducted in June 2006 and subsequently purchased by NovaGold Resources in early 2011. Copper Canyon Resources consisted of 4 projects of which 3 were again spun-out into a new company at the time of acquisition by NovaGold. This new company is called Omineca Mining and Metals.
The chart below depicts the value of one Eagle Plains share over the years if purchased prior to the spin-out of Copper Canyon Resources in June 2006. It includes the value of Yellowjacket Resources which was spun-off in late December 2011 to Eagle Plains shareholders on a one for three basis.
Eagle Plains stock trades on the TSX Venture Exchange (TSX-V) under the symbol EPL.
Yellowjacket Resources Plan of Arrangement - Accounting Information
In Dec 2011, Eagle Plains Resources spun-off it's Yellowjacket Project into Yellowjacket Resources, resulting in a 1 for 3 share split. For accounting purposes the cost basis of the Yellowjacket Resources share is to be 31.58% of the pre-split Eagle Plains share purchase cost.
Click here for Tax Election Instructions for the Disposition of Eagle Plains Butterfly Shares
Click to view the Yellowjacket Plan of Arrangement Information Circular - 17mb
Copper Canyon Plan of Arrangement - Accounting Information
In June 2006, Eagle Plains Resources spun-off it's Copper Canyon , Abo and Severence properties into Copper Canyon Resources, resulting in a 1 for 1 share split. For accounting purposes the cost basis of the Copper Canyon share is to be 59.35% of the pre-split Eagle Plains share purchase cost.
We have retained an independent & informal opinion of the tax implications to our USA shareholders as a result of the plan of arrangement, click here to view.
Investor Relations Resources
- Visit the link below to view Eagle Plains Profile at Standard and Poor's:
For more information, please contact:
Investor Relations Manager
Phone 1.866.HUNT ORE / 1.866.486.8673.
Updated February 20, 2013