Eagle Plains Shareholders Approve Plan of Arrangement
Cranbrook, BC, June 12th, 2006: Eagle Plains Resources Ltd. (EPL:TSX-V) announces that at its June 9th, 2006, Annual and Special Meeting, shareholders of Eagle Plains approved the Plan of Arrangement (the “Arrangement”), whereby the Company will spin out its Copper Canyon, Abo (Harrison Gold) and Severance properties (the “Properties”) into Copper Canyon Resources Ltd. (“Copper Canyon”). Each Eagle Plains shareholder will, immediately after the Arrangement, hold one new common share in the capital of Eagle Plains and one common share in Copper Canyon that will be distributed to persons who were shareholders of Eagle Plains on June 5th, 2006 (the “Share Distribution Record Date”) (see May 31st, 2006 news release).
Eagle Plains also announces it has filed the Plan of Arrangement documents with the Court of Queen’s Bench today, June 12th, 2006, and has obtained the Court’s final approval for the transaction. The Court approved documents will be filed with the Alberta Registrar of Corporations to complete the transaction. Concurrently, Copper Canyon has made application for conditional listing of its shares on the TSX Venture Exchange. Upon completion, the Copper Canyon shares will be distributed, at which time it is expected that such shares will be listed and trading on the TSX Venture Exchange and the trading halt of the Eagle Plains shares currently in effect will be lifted. It is anticipated that Copper Canyon will trade under the symbol “CPY”.
Based on the issued shares of Eagle Plains on the Share Distribution Record Date of 48,351,810, on completion of the transaction there will be 48,351,810 issued shares in each of Eagle Plains and Copper Canyon, held by the shareholders of Eagle Plains as of the Share Distribution Record Date. Shareholders are not require to take any further action or steps to obtain the shares, as such shares will be distributed pursuant to the shareholders’ list dated the Share Distribution Record Date by CIBC Mellon Trust Company.
The Arrangement also provides for Eagle Plains to transfer $650,000 to Copper Canyon, which funds will provide Copper Canyon with working capital to cover administration expense and proposed exploration programs on the Properties.
The completion of the reorganization of Eagle Plains will provide shareholders with direct ownership in two well-focused companies. Eagle Plains will continue to finance and aggressively exploring early-stage base- and precious metal properties, while Copper Canyon will focus on the development of its more advanced projects.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 35 gold and base metal projects, many of which are joint-ventured with third parties including NovaGold Inc. (AMEX,TSX:NG), Alexco Resource Corp. (TSX-V:AXR), and Blind Creek Resources. These agreements expose Eagle Plains to over $8,000,000 in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 30,000m (100,000’) of drilling and over $9,000,000 in exploration spending on its projects since 1998. During the 2005 season, EPL has seen over 11,900m (39,000’) of diamond drilling on its properties.
This news release has been reviewed and approved by Tim J. Termuende, P.Geo., hereby designated as a “Qualified Person” under National Instrument 43-101.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
For further information on EPL, please contact Mike Labach at 1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.