Eagle Plains Provides Additional Disclosure on Recently Announced Completed Flow-Through Financing

Rhea-AI Summary

Eagle Plains Resources Ltd. has successfully closed a non-brokered private placement of 7,571,058 flow-through units at $0.17 CDN per unit, raising $1,287,080 CDN. Each unit includes a flow-through common share and one-half warrant exercisable at $0.25 CDN for 24 months. The offering involves related party transactions, totaling 1,250,000 units for $212,500. The funds will be allocated for exploration in British Columbia and Saskatchewan, with expectations for 2022 taxation year benefits.

Positive

• Raised $1,287,080 CDN through private placement to enhance exploration funding.
• Participation of existing shareholders indicates strong support and confidence in the company's direction.

Negative

• Related party transactions could raise concerns about conflicts of interest.
• The structure of the financing may dilute existing shareholders' equity.

CRANBROOK, BC / ACCESSWIRE / July 15, 2022 / Eagle Plains Resources Ltd. (TSXV: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 June 30th, 2022. Eagle Plains has closed subscriptions for a total of 7,571,058 flow-through units at a price of $.17 CDN per unit for gross proceeds of $CDN 1,287,080. Each unit consists of a flow-through common share and one-half non-flow-through common share purchase warrant, each whole warrant exercisable at $.25 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.

Finder's fees of $3,570 were paid to registered dealers or eligible arms-length third parties involved in the financing. Certain directors and insiders of the Company participated in the financing with the majority of subscribers being existing Eagle Plains security-holders.

Proceeds from the sale of units will be used to fund exploration of the Company's various projects in British Columbia and Saskatchewan and are expected to be renounced for the 2022 taxation year as Canadian Exploration Expenses as defined in the Income Tax Act.

Additional Disclosure Information

Certain subscribers under the Offering are considered to be a "related party" of the Company, and have subscribed for an aggregate of 1,250,000 Flow-Through Units for gross proceeds of $212,500. Each subscription by a "related party" of the Company is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Policy 5.9 - Protection of Minority Security Holders in Special Transactions of the TSX Venture Exchange. Pursuant to MI 61-101, the Company will file a material change report providing disclosure in relation to each "related party transaction" on SEDAR under the Company's issuer profile at www.sedar.com. The Company did not file the material change report more than 21 days before the expected closing date of the Offering as the details of the Offering and the participation therein by each "related party" of the Company were not settled until shortly prior to the closing of the Offering, and the Company wished to close the Offering on an expedited basis for sound business reasons. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 of MI 61-101 in reliance on sections 5.5(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company's market capitalization. Additionally, the Company is exempt from minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on section 5.7(a) as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company's market capitalization. The Offering was approved by the board of directors of the Company. No special committee was established in connection with the Offering, and no materially contrary view or abstention was expressed or made by any director.

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 recently Taiga Gold being notable examples.

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. Eagle Plains also holds significant royalty interests in western Canadian projects, covering a broad spectrum of commodities on projects controlled by Cameco Corp., Iso Energy Corp., Denison Mines Corp., Skeena Resources Ltd. and Alexco Resource Corp./Banyan Gold Corp., among many others. Management's focus is to advance its most promising exploration projects. 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 2011-2021 on Eagle Plains-related projects exceed $27M, the majority of which was funded by third-party partners. This exploration work resulted in approximately 42,000m 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.

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https://www.accesswire.com/708783/Eagle-Plains-Provides-Additional-Disclosure-on-Recently-Announced-Completed-Flow-Through-Financing

FAQ

What did Eagle Plains Resources announce on July 15, 2022?

Eagle Plains announced the closing of a private placement raising $1,287,080 CDN through the sale of 7,571,058 flow-through units.

How much did Eagle Plains Resources raise in the private placement?

The private placement raised a total of $1,287,080 CDN.

What is the exercise price for the warrants associated with Eagle Plains Resources' private placement?

The warrants are exercisable at $0.25 CDN for a 24-month period.

What will the proceeds from the private placement be used for?

The proceeds will be used to fund exploration projects in British Columbia and Saskatchewan.

Did any directors or insiders participate in the private placement?

Yes, certain directors and insiders participated in the financing.