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Eagle Plains Announces the Execution of Definitive Agreements Relating to the Proposed Spin-Out of Eagle Royalties
CRANKBROOK, BC / ACCESSWIRE / March 1, 2023 / Further to its news release dated January 4, 2023,...
About this update from Eagle Plains Resources Ltd.
[{"type":"text","content":"Eagle Plains Announces the Execution of Definitive Agreements Relating to the Proposed Spin-Out of Eagle RoyaltiesCRANKBROOK, BC / ACCESSWIRE / March 1, 2023 / Further to its news release dated January 4, 2023, Eagle Plains Resources Ltd. (TSXV:EPL) (\"EPL\" or \"Eagle Plains\") is pleased to announce that it has entered into an arrangement agreement with its wholly-owned subsidiary, Eagle Royalties Ltd. (\"ER\" or \"Eagle Royalties\") and an amalgamation agreement among 1386884 B.C. Ltd. (\"138\") and Eagle Royalties.Strategic Rationale for the Spin-out Transaction and the Subsequent AmalgamationSeparating over 50 separate royalties from Eagle Plain's current portfolio of assets is expected to enable Eagle Royalties to focus on accretive growth, spotlighting the value of the royalty assets and potentially realizing a fair market value that is commensurate with peer royalty companies;Eagle Plains securityholders will benefit by holding shares in two separate public companies listed on both the TSX Venture Exchange (\"TSX-V\") and the Canadian Securities Exchange (\"CSE\");Separating the royalties is expected to expand Eagle Royalties' potential shareholder base, marketing opportunities and access to capital;Packaging these diverse royalty assets into an independent and stand-alone vehicle that is readily available for a possible acquisition by other royalty companies interested in expanding their existing portfolio; andEagle Plains' board of directors and management team will maintain its focus on its core business model of acquiring and advancing grassroots critical and precious metal exploration properties.Tim Termuende, President and CEO of Eagle Plains and Eagle Royalties commented on the proposed transaction: \"We are encouraged by progress made to date by our geological, accounting and legal teams. As we move toward completion of the proposed transactions, we are confident that the resulting entity will be well-funded, well-structured and strategically positioned to take advantage of opportunities in the royalty sector\".Definitive Agreements and Related MattersArrangement AgreementUnder the terms of arrangement agreement dated February 28, 2023 between Eagle Plains and Eagle Royalties, Eagle Plains will undergo a capital reorganization and, through a series of transactions, will transfer a majority of its portfolio of roy...