Since 1992, Eagle Plains Resources (EPL:TSX-V) has been acquiring and developing early stage mineral exploration projects in Western Canada. To develop these projects, we have assembled an expert in-house technical team of geologists, technicians and geographic information system specialists. Seasonally we also contract geologists specializing in specific types of mineralization to assist with our field programs. The company currently controls over 35 gold, silver, uranium and base-metal and rare earth mineral projects.
With over 35 projects, EPL is considered a project generator and invites joint venture participation to expedite project development. The joint venture model reduces shareholder exposure to the risk of exploration while enhancing exposure to a discovery directly on Eagle Plains projects and indirectly through it's portfolio of shares of other companies. With our in-house staff we are able to technically assist our joint venture partners.
Below is a chart depicting annual exploration expenditures on Eagle Plains projects by Eagle Plains and its option partners. Also included are expenditures on the projects of companies that have been spun-out from Eagle Plains. Finally, the value associated with Terralogic Consulting is the work completed by Terralogic Exploration for third parties, this creates revenue for Eagle Plains but are not expenditures on EPL projects.
Creating Shareholder Value
To create shareholder value when a discovery is made or a project is developed beyond the grass roots level, EPL may elect to spin-off the project into a new corporate entity. This spotlights the value of the more advanced project, creates value with new shares to the shareholder and makes it available for acquisition by a producing company.
Eagle Plains first spin-off was Copper Canyon Resources in June 2006 on a one-for-one share basis. Copper Canyon Resources was in turn purchased by NovaGold Resources in early 2011 on a 13.5 CPY for 1 NG share basis, As a result of the purchase, several exploration projects were again spun-off from Copper Canyon Resources into a new corporation called Omineca Mining and Metals. This spin-off resulted in a 1 OMM for 4 CPY share basis.distribution. The next Eagle Plains spin-off was Yellowjacket Resources, now Dixie Gold, which resultied in a one-for-three share distribution to Eagle Plains Shareholders.
The latest Eagle Plains spin-out was Taiga Gold Corp in April 2018. Taiga Gold was acquired by SSR Mining in April 2022 in an all cash deal amounting to approx $31M ($0.265/share).
In brief, the business model that Eagle Plains Resources follows is:
- Acquisition of highly prospective grass roots and semi-developed mineral exploration projects.
- Develop these projects using joint-venture participation
- Spin-off developed asstes to create value for shareholders by simplifying the asset for the market place and making it available for M&A attention.
Below is a graphic example of the value that Eagle Plains Resources has created since 2005 including the spin-off of Copper Canyon Resources, Omineca Mining & Metals, Yellowjacket Resources (now Dixie Gold Inc) and Taiga Gold Corp. The combined value of these spin-outs exceeds $100 million.
For more information, view Eagle Plains Corporate Brochure 2023
Updated January 9, 2023