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Gold/Mining/Energy : Abitibi Mining -- Ignore unavailable to you. Want to Upgrade?

To: Just G who wrote (87)	5/20/1999 5:25:00 PM
From: M5PRO	Read Replies (1) \| Respond to of 96

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