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Eagle Plains Announces $4.5M Financing
Cranbrook, B.C.: Eagle Plains Resources Ltd.
(EPL:TSX-V) announces that it intends to complete a
brokered public offering to raise up to $4,500,000 by
way of Offering Memorandum to arm’s-length investors.
First Associates Investments Inc. will be lead broker
for the offering on a best efforts basis and subject
to due diligence, though a sellers group is expected
to involve various investment houses.
Through its agent, Eagle Plains will offer a minimum
of 2 million and a maximum of 3 million units at $1.50/unit
to purchasers in British Columbia, Alberta, Saskatchewan
and Ontario. Each unit will consist of two common
shares and one flow-through common share with one non-transferable
share purchase warrant, and will be subject to a four-month
hold period. Each warrant will entitle the holder
to
acquire one additional common share for a period of
two years at a price of $1.00 per share. The common
share purchase warrants are subject to an accelerated
expiry if the published closing trade price of the
common shares on the TSX Venture Exchange is greater
than or
equal to $1.00 for any 10 consecutive trading days,
in which event the holder will 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.
First Associates, as agent for this offering, will
be paid a commission of 7.5% on the gross proceeds of
the
offering, plus 10% agents units (200,000-300,000 units)
exercisable at $1.50 per unit for a period of two
years. Each agents unit will be exercisable into three
common
shares and one common share purchase warrant. Each
agents warrant will entitle the agent to acquire one
common
share at an exercise price of $1.00 per share for
a period of 24 months from the closing date. The financing
is expected to be completed by late February.
Proceeds from the offering will be used to advance
exploration work on Eagle Plains’ 100% owned Kalum property
located near Terrace, BC, and for property research,
general corporate and working capital purposes. The
offering is subject to execution of agency agreements
and TSX Venture Exchange acceptance which is expected
in the ordinary course.
Eagle Plains Resources continues to conduct research,
acquisition and exploration projects in western Canada.
Through a network of prospectors, consultants and
experienced contractors in addition to seasoned employees
and a
well-rounded Board of Directors, the Company has assembled
a diverse portfolio of gold and base-metal properties.
EPL seeks to attract joint-venture participation on
its properties, thereby leveraging exploration spending
to the ultimate benefit of the Company’s shareholders.
In recent years, Eagle Plains has completed option agreements
with Billiton Exploration Canada Ltd., Rio Algom Exploration
Inc., Kennecott Canada Exploration Inc., NovaGold/SpectrumGold
Inc., Viceroy Resource Corp. and numerous other junior
exploration companies, resulting in nearly 10,000m (33,000’)
of drilling and over $5,000,000 in exploration spending
on its properties since 1998.
On Behalf of the Board of Directors
Tim J. Termuende, P.Geo.
President and CEO
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