Eagle Plains Announces Letter of Intent with Earthwise Minerals for Option of the Iron Range Project, British Columbia

Rhea-AI Summary

Eagle Plains Resources (TSX-V:EPL) has entered into a non-binding letter of intent with Earthwise Minerals (CSE:WISE) for an option agreement on the Iron Range Gold project in British Columbia. Under the agreement, Earthwise can acquire up to an 80% interest in the 21,437ha property.

The project has shown promising drilling results, including historical intersections of 14.0m grading 5.1g/t gold, 1.86% lead, 2.1% Zinc, 75.3g/t silver, and another intersection of 7.0m grading 51.52g/t gold. To acquire a 70% interest, Earthwise must complete $4M in exploration expenditures, pay $250,000 cash, and issue 1.5M shares over four years. An additional 10% can be acquired through a $1M payment and completing a bankable feasibility study.

The property, located near Creston, BC, features excellent infrastructure including a high-pressure gas pipeline, high-voltage power line, and rail access to the Teck smelter. Eagle Plains will retain a 2.0% NSR, which can be reduced to 1.0% for $1.5M.

Positive

• Historical high-grade gold intersections (14.0m @ 5.1g/t Au and 7.0m @ 51.52g/t Au)
• Potential $4M in exploration funding from Earthwise
• Cash payments totaling $250,000 and 1.5M shares to be received
• Property has excellent infrastructure and permitted status
• Retains 2.0% NSR royalty with $1.5M buydown option

Negative

• Agreement is non-binding and may not be completed
• Significant dilution of project ownership (up to 80%)

CRANBROOK, BC / ACCESS Newswire / February 10, 2025 / Eagle Plains Resources Ltd. (TSX-V:EPL) ("Eagle Plains") is pleased to announce it has entered into a non-binding letter of intent ("LOI") with Earthwise Minerals Corp. (CSE:WISE) ("Earthwise") whereby Eagle Plains and Earthwise will negotiate and settle the terms of a definitive option agreement (the "Option Agreement") for Earthwise to acquire up to an 80% interest in Eagle Plains' wholly-owned Iron Range Gold project (the "Iron Range Project").

Drilling at Iron Range in 2010 resulted in the discovery of the Talon Zone, where drill-hole IR10-010 intersected 2 intervals of strong and continuous mineralization including 14.0m grading 5.1g/t gold, 1.86% lead, 2.1% Zinc, 75.3g/t silver and 7.1m grading 8.13g/t gold, 2.84% lead, 3.07% zinc, 86.6g/t silver (Eagle Plains news release December 21st, 2010). Previous drilling 10km north of the Talon Zone in 2008 by Eagle Plains intersected gold mineralization in drill-hole IR08006 which assayed 7.0m grading 51.52g/t (1.50 oz/ton) gold (Eagle Plains news release dated April 20th, 2009).

Management of both Eagle Plains and Earthwise consider the Iron Range project to hold excellent potential for the presence of structurally controlled gold-silver mineralization, iron-oxide copper-gold ("IOCG") and Sullivan-style lead-zinc-silver sedimentary-exhalative ("sedex") mineralization.

See Iron Range Project Information and Map here

Iron Range Project Summary

The 21,437ha Iron Range Project located near Creston, BC, is owned 100% by Eagle Plains, subject to a 1% NSR on a portion of the claim group. A well-developed transportation and power corridor transects the southern part of the property, including a high-pressure gas pipeline and a high-voltage hydro-electric line, both of which follow the CPR mainline and Highway 3. The rail line provides efficient access to the Teck smelter in Trail, B.C. The project is fully permitted with a Multi-Year Area Based (MYAB) permit in place issued by the BC Ministry of Mining and Critical Minerals that includes provisions for geophysical work, mechanical trenching, access trail construction and diamond drilling.

The Iron Range property covers an extensive area approximately 10km x 32km which overlies the regional Iron Range Fault System ("IRFS"). Prior to the acquisition by Eagle Plains in 2001, the property had seen little systematic exploration for other than iron resources known to exist on the property since the late 1800s. Since 2001, Eagle Plains and its partners have completed 21,593m of diamond-drilling in 87 holes, collected 2482 line-km of airborne and surface geophysical data and analysed 10,053 soil geochemical samples, 495 rock samples and 6955 drill core samples.

Under the terms of the LOI, Earthwise may acquire a 70% interest in the Iron Range Project (Option 1) by completing the following over a four-year period:

• Total exploration of expenditures of CDN $4,000,000, including $200,000 in 2025

• Total cash considerations of CDN $250,000

• Issuing 1,500,000 common shares of Earthwise

Following the completion and notice of Option 1, Earthwise shall have the right to earn an additional 10% interest in the Iron Range Project (Option 2) by notifying Eagle Plains of its intent to increase its interest to 80%, making an additional one-time payment of CDN$ 1,000,000 cash and completing a bankable feasibility study on the Property.

Upon completion and notice of exercise of Option 1, Eagle Plains will retain a total 2.0% NSR on all areas underlain by the Property, which may be bought down to 1.0% for $1,500,000.

Eagle Plains will serve as Operator under the terms of Option and will reserve the right to use TerraLogic Exploration Inc. as geoscience consultant. Following the exercise of either Option 1 or 2, Earthwise and Eagle Plains shall then form a 70/30 or 80/20 joint venture ("JV") to further explore and develop the Property.

A formal agreement with industry standard terms will be prepared, and the expectation is the agreement will be settled and executed by the parties within 45 days. The terms and conditions of the formal agreement will be subject to the laws of the Province of British Columbia, Canada, and subject to regulatory approval.

Further details regarding the proposed transaction will be provided in a comprehensive news release if, and when, the parties enter into the formal Option Agreement. There can be no guarantees that the proposed transaction will be completed as contemplated or at all.

Qualified Person

Technical information in this News Release has been reviewed and approved by C.C. Downie, P.Geo., a director and officer of Eagle Plains, hereby identified as the "Qualified Person" under N.I. 43-101.

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, with a focus on critical metals integral to an increasingly electrified, decarbonized economy.

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.

On October 2, 2024, Eagle Plains announced announce the formation of a separate division within the Company that will give Eagle Plains' shareholders direct exposure to strategic opportunities in Canadian green energy transition. As a wholly owned subsidiary of Eagle Plains, Osprey Power Inc. ("OP") will focus on identifying and advancing innovative and diverse clean energy project portfolios in target markets throughout Canada, with an initial focus on 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 2010-2024 on Eagle Plains-related projects exceed $39M, the majority of which was funded by third-party partners. This exploration work resulted in approximately 50,000m 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 of Eagle Plains

"C.C. (Chuck) Downie, P.Geo"
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.

View the original press release on ACCESS Newswire

FAQ

What are the terms for Earthwise to acquire 70% of EPL's Iron Range Project?

Earthwise must complete $4M in exploration expenditures (including $200,000 in 2025), pay $250,000 cash, and issue 1.5M common shares over a four-year period.

What were the significant historical drilling results at EPL's Iron Range Project?

Historical drilling revealed 14.0m grading 5.1g/t gold, 1.86% lead, 2.1% Zinc, 75.3g/t silver, and a separate intersection of 7.0m grading 51.52g/t gold.

How can Earthwise acquire an additional 10% (80% total) interest in EPL's Iron Range Project?

After completing the first option, Earthwise can acquire an additional 10% by making a $1M cash payment and completing a bankable feasibility study.

What royalty will Eagle Plains retain on the Iron Range Project?

Eagle Plains will retain a 2.0% NSR royalty, which can be reduced to 1.0% for a payment of $1.5M.

What is the size and location of EPL's Iron Range Project?

The Iron Range Project is 21,437 hectares in size and is located near Creston, British Columbia.