Eagle Plains Closes Fully-Subscribed Financing

Rhea-AI Summary

Eagle Plains Resources Ltd. has successfully closed a non-brokered private placement, raising a total of $529,060 CDN. This includes 1,015,000 non-flow-through units at $0.16 CDN each and 2,037,000 flow-through units at $0.18 CDN each. The proceeds will be allocated for exploration projects in British Columbia and Saskatchewan, enhancing shareholder value. The company is committed to responsible exploration practices and has invested over $20M in projects since 2011. The common share purchase warrants are exercisable at $0.30 CDN for 24 months.

Positive

• Successful closure of private placement raising $529,060 CDN.
• Funding earmarked for exploration projects in resource-rich regions.
• Company's commitment to responsible exploration practices.

Negative

• None.

CRANBROOK, BC / ACCESSWIRE / September 25, 2020 / 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 September 23rd, 2020. Eagle Plains has closed subscriptions for a total of 1,015,000 non-flow-through units at a price of $.16 CDN per unit for gross proceeds of $162,400 CDN. Each unit consists of a non-flow-through common share and one-half non-flow-through common share purchase warrant, each whole warrant exercisable at $.30 CDN for a 24 month period.

The Company has also closed subscriptions for a total of 2,037,000 flow-through units at a price of $.18 CDN per unit for total proceeds of $366,660 CDN. Each flow-through unit consists of a flow-through common share and one-half non-flow-through common share purchase warrant, each whole warrant exercisable at $.30 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.

A 7% commission or finders fee may be paid to registered dealers or eligible arms-length third parties involved in the financing.

Proceeds of the concurrent financings have raised a total of $529,060 CDN. Proceeds from the sale of units will be used to fund exploration of the company's various projects in British Columbia and Saskatchewan and for general working capital. Funds earmarked for exploration will qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2020 taxation year.

About Eagle Plains Resources

Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. 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. Managements' current focus is to preserve its treasury while advancing its most promising exploration projects. In addition, Eagle Plains continues to seek out and secure high-quality, unencumbered projects through research, staking and strategic acquisitions. Since 2012, Eagle Plains has added to its portfolio a number of new projects exceeding 130,000 ha targeting mainly gold, uranium and base-metals in Saskatchewan, a highly-prospective mining jurisdiction which was recently recognized by the Fraser Institute as one of the top 3 jurisdictions in the world in terms of Investment Attractiveness. 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 2011-2019 on Eagle Plains-related projects exceed $20M, most of which was funded by third-party partners. This exploration work resulted in approximately 30,000 m 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: mgl@eagleplains.com 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.

SOURCE: Eagle Plains Resources Ltd.

View source version on accesswire.com:
https://www.accesswire.com/607856/Eagle-Plains-Closes-Fully-Subscribed-Financing

FAQ

What was the total amount raised by Eagle Plains Resources in the recent financing?

Eagle Plains Resources raised a total of $529,060 CDN in the recent financing.

What are the key components of the Eagle Plains private placement?

The private placement closed included 1,015,000 non-flow-through units and 2,037,000 flow-through units.

What will the proceeds from the financing be used for?

The proceeds will fund exploration projects in British Columbia and Saskatchewan and for general working capital.

What is the exercise price and duration for the common share purchase warrants?

The common share purchase warrants are exercisable at $0.30 CDN for a period of 24 months.

What potential risk is associated with the common share purchase warrants?

The warrants are subject to an accelerated expiry if the stock price reaches $0.50 CDN for 20 consecutive trading days.