Eagle Plains Resources Ltd. (EPL:TSX-V) is a mineral exploration company operating in western Canada exploring for gold, base-metals, uranium, rare earth elements and industrial minerals.
Corporate Objective: To enhance shareholder value through acquisition and development of early stage mineral exploration projects using the following business model:
Project Generator Business Model
- Research, acquire & develop mineral exploration projects using in-house geological expertise
- Utilize the earn-in contributions of option partners to fund development of exploration projects
- Generate revenue through Terralogic Exploration Inc., a wholly owned subsidiary
- Spin-off advanced projects to make available for acquisition and create shareholder value
Eagle Plains Resources - Corporate Presentation
Eagle Plains "Project Generator" Business Model Animation
Interview with Tim Termuende - President & CEO
March 7, 2016
Project Generator - A Risk Averse Business Model
Optioning Projects to Partner Companies
The primary objective of Eagle Plains' project generator business model is to create partnerships with other companies to advance its exploration projects. Partnering companies may earn an interest in an Eagle Plains project by conducting exploration work in addition to making cash and share payments. Once the earn-in requirements have been satisfied a joint-venture partnership is formed and the partners contribute going forward based on their interest in the project. This strategy is designed such that in the event of a mineral discovery, Eagle Plains may spin-out its interest of that project into a new company to make it available for acquisition. Shares of the new comapany are distributed to existing Eagle Plains shareholders.
Below is a list of these projects that are optioned to other companies detailing the earn-in option terms including exploration requirements and cash & share payments to Eagle Plains. A more inclusive list of projects that have been optioned, sold and under joint-venture can be viewed here: Project Generator Deal Flow
|EPL Project Name||Commodity||Exploration Terms - $ millions||Cash Terms - $ 000's||Share Terms - 000's|
|LaRonge Gold Belt||Gold||n/a||n/a||700|
|Orchid||Diamond, Gold||Fund exploration for 3 years for 70% of the diamond rights only||n/a||n/a|
Royalties (NSRs and GORs)
Another aspect of Eagle Plains project generator business model includes exposure to the work other companies conduct via royalties on properties that have been vended to them by Eagle Plains. Currently Eagle Plains holds royalties on dozens of such projects owned by junior to senior mining and exploration companies. For the most part these royalties are 2% Net Smelter Return Royalty (NSRs) and where 1% may be purchased from Eagle Plains for $1m prior to production. Here is a link to a map of those properties where Eagle Plains holds underlying royalties.
Eagle Plains History of Value
Eagle Plains primary goal is to create value for our shareholders through discovery of gold, base-metal, uranium, rare earth element and industrial mineral deposits. This goal is balanced with the strategy of minimizing financial risk and maximizing corporate sustainability. The result is worthy of bringing to your attention as a shareholder or potential shareholder........Read more about Eagle Plains history of value
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