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Corporate Incubation

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Creating Valuable Liquidity Events for Shareholders

Eagle Plains has many projects and royalties at early stages of development. When one or more of these assets greatly appreciate in value through metal discovery this value may not be fully appreciated in the share price as it can be obscured by the other more early-stage projects.

The Challenge

How do we realize full value by the market and how do we get this value to the shareholders?

The Solution

Spotlight this asset by placing it in a new company then distribute shares of this new company to existing Eagle Plains shareholders.

As a result of this strategy, to date Eagle Plains has distributed ~$115,000,000 in value by spinning-out key assets. This achieves several objectives:

  1. Spotlights and unlocks the value of that asset
  2. Rewards EPL shareholders with a share of the new company
  3. Simplifies the corporate structure and makes that asset an easy target for acquisition 

As a successful exploration company, Eagle Plains has found that the best way to monetize a mineral discovery is to move it up the mining food chain to a larger company that has the resources to develop it further. The acquiring company often pays a significant premium for this asset.

By spinning-out this asset in a separate company, it makes the ‘company’ a viable takeover target rather than the ‘asset’ itself. In this way Eagle Plains, in essence, “dividends” the value to shareholders through the sale of the ‘company’ where that value ends up in shareholders accounts rather than the sale of the ‘asset’ where that value ends up in the corporate treasury.

Notable Spin-outs

  • Copper Canyon Resources (TSX-V:CPY) which was purchased by NovaGold Resources in 2011 in an all share deal amounting to ~$65M
  • Taiga Gold Corp. (CSE:TGC) which was purchased by SSR Mining in 2022 for an all cash deal amounting to ~$31M

Latest Spin-out

Eagle Plains’ latest spin-out, Eagle Royalties (CSE:ER), occurred in May 2023. In this case, the asset is a group of over 35 mineral royalties. One of these, the AurMac (McQuesten), has become potentially quite valuable as it covers a significant portion of Banyan Gold's 7M oz gold discovery in the central Yukon. 

For more information about this spin-out, visit the Eagle Royalties website. 

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