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Cranbrook, B.C., 23 December, 2009: Eagle Plains Resources Ltd. (TSX-V:EPL) has closed a brokered and non-brokered public offering as originally announced on November 25th, 2009. A first tranche closing was announced December 11, 2009. The financing was offered to arms-length and non-arms length investors and was comprised of 2,664,272 non flow-through units and 1,497,000 flow-through units for gross proceeds of CDN $855,600.
Non flow-through units were sold at a price of $.18 CDN per unit, each unit consisting of a non-flow-through common share and one-half non-flow-through common share purchase warrant, each whole warrant exercisable at $.30 CDN for an 18 month period. Flow-through units were sold at a price of $.22 CDN per unit, each unit consisting of a flow-through common share and one-half non-flow-through common share purchase warrant, each whole warrant exercisable at $.30 CDN for an 18 month period. First tranche issued securities are subject to a hold period expiring April 12, 2010 and second tranche issued securities are subject to a hold period expiring April 24, 2010.
The common share purchase warrants are subject to an accelerated expiry if the published closing trade price of the common shares on the TSX Venture Exchange is greater than or equal to $.50 for any 10 consecutive trading days, in which event the holder will be given notice that the warrants will expire 30 days following the date of such notice. The common share purchase warrants may be exercised by the holder during the 30 day period between the notice and the expiration of the common share purchase warrants.
A 7% commission or finders fee will be paid to registered dealers or arms-length third parties involved in the financing. 10% broker warrants consisting of non-flow-through shares have been offered to qualified registered dealers.
A portion of the proceeds from the sale of the shares will be used to finance production activity at the Yellowjacket Gold Project near Atlin, B.C.; exploration of the company's various projects in British Columbia, Saskatchewan, Yukon and NWT and for general working capital. Funds earmarked for exploration will qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2009 taxation year.
A 7% commission in the aggregate amount of $38,562 and 10% broker warrants to acquire an aggregate 270,254 common shares were issued to the following groups: Odlum Brown Limited, Pacific International Securities, Generic Capital Corporation., Northern Securities Inc., Union Securities Ltd., Canaccord Financial Ltd.
About Eagle Plains Resources
Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Waterloo Resources Ltd (TSX-V:WAT.P) and XO Gold Resources Ltd. (a private B.C. company). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,000m (158,500?) of drilling and over $27.0 million in exploration spending on its projects since 1998.
Expenditures during 2008 on Eagle Plains? projects were approximately $6,000,000, funded equally between Eagle Plains and third party partners. This work resulted in approximately 6,300m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.
On behalf of the Board of Directors
Signed
?Charles C Downie?
VP Exploration and Director
For further information, please contact Mike Labach
Cautionary Note Regarding Forward-Looking Statements
The TSX Venture Exchange has not reviewed and does not accept 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.
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