Royalty Generation

Maintaining Long-Term Upside Exposure to Mineral Discovery

Since its formation in 1992, Eagle Plains Resources has assembled a large portfolio of mineral exploration royalties (>70) as a result of decades of project deal-flow. It has secured royalty interests over a wide range of commodities in Western Canada located in areas of active mining, advanced development and exploration. Most of these are in the form of a net smelter royalty (NSR).

What is a Mineral Royalty and Why Is It Important?

Net Smelter Return (NSR) is the net revenue that the owner of a mining property receives from the sale of the mine's products less transportation and refining costs. As a royalty it refers to the percentage of NSR that a mine operator is obligated to pay the owner of the royalty. The holder of a royalty is not responsible for any of the costs of developing the mine nor for the production of the ore, in essence, it’s a risk-free ride.

While Eagle Plains has held many of these royalty interests for decades, management believed that their true value was not reflected within the diverse holdings of Eagle Plains and this would be more identifiable as a separate company. To unlock this value and make these available for acquisition, many of these royalties were transferred to Eagle Royalties Ltd., which was spun-out as a separate company in May 2023 and listed on the Canadian Securities Exchange with the trading symbol “ER”.

The flagship of Eagle Royalties and the primary reason for the spin-out of this group of assets is the AurMac (McQuesten) Royalty. This royalty overlies significant portions of Banyan Gold Corp’s discovery of 7M oz gold at the Aurmac Property where work to further develop this resource continues, an explanation of this royalty can be viewed on the above video link. For a more information about these royalties, visit the Eagle Royalties website.

Eagle Plains continues to organically generate royalties through deal-flow; the acquisition of new projects and the selling or optioning these to other companies.