Does anybody think with the arrival of Rio Algom and Billiton PLC(a london based company)that this area could be the next hot spot? I believe Kennecott recently struck a deal in this area too!
C-YA
Matt
Eagle Plains Resources Ltd -
Eagle Plains enters agreement with London-based company
Eagle Plains Resources Ltd
EPL
Shares issued 8,052,975
1999-05-19 close $0.35
Thursday May 20 1999
Mr. Tim Termuende reports
The company has entered into an agreement with London-based Billiton Plc
through its wholly owned subsidiary Billiton Exploration Canada Ltd., covering
claims in the Findlay Creek area 45 kilometres north of the Sullivan Mine in
Southeastern B.C., Canada. This area is considered highly prospective for the
discovery of new zinc sedex deposits within the Proterozoic Aldridge formation.
The Sullivan deposit, owned by Cominco Ltd. contained reserves of 149 million
tonnes grading 6.3 per cent lead, 5.9 per cent zinc, and 69 grams per tonne silver
and has seen continuous production for over 100 years. The mine is scheduled for
shutdown in December 2001.
Billiton will make an investment in Eagle Plains in exchange for the right to option
the North Findlay and Hap properties (owned 100 per cent by Eagle Plains) and
the right of first refusal for future financing by the company.
The subscription stage of the agreement involves the purchase by Billiton of
1,125,000 shares at 40 Canadian cents per share, of which 875,000 will be
issued as flow-through shares. Proceeds from the above will be $450,000, and
will augment additional private-placement proceeds of $350,000 from the
proposed sale by Eagle Plains to arm's length and non-arm's length investors of an
additional 875,000 units comprised of one 40 cents flow-through share and one
Series A warrant (exercisable for one year at 55 cents per share, and for a second
year at 75 cents per share), for a total financing of $800,000 (Canadian). A total
of 1,125,000 Series A warrants will also be made available to Billiton in addition
to one million Series B warrants exercisable at 75 cents for a period of 36 months,
with Series B warrants conditional upon Billiton entering into an option on the
above-mentioned properties. Partial funding from the financing will be used by
Eagle Plains, as operator, to carry out a $350,000 diamond drilling program on
the North Findlay property during 1999.
The second stage will involve the right of Billiton to enter into an option agreement
whereby Billiton may earn a 50 per cent interest in the Hap and North Findlay
properties by spending $2-million on exploration over four years. Billiton may
secure another 20 per cent interest (for a total of 70 per cent interest) by
providing Eagle Plains with project financing to the start of commercial production
from the property.
Commenting on the agreement, David Whitehead, Billiton's chief executive,
exploration and development said, "Following last month's announcement of the
restructuring of our Exploration and Development Division, this deal is an
important confirmation of our intention to work very much more closely with
independent resource companies and is reflective of the new approach that Billiton
will take in the exploration business. We welcome the opportunity to work with
Eagle Plains who recognised in 1995 the potential of the area to host a significant
zinc sedex deposit of the Sullivan type, and we look forward to the
commencement of the drilling programme during the summer."
The issuance price for the above financing was determined by current market
conditions and through negotiation between Eagle Plains and Billiton. Completion
of the proposed private placement is subject to the company receiving all required
approvals. The Alberta Stock Exchange requires that a formal application be filed
by the company within 14 days of this news release.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
