Business
Eagle Plains Closes First Tranche of Flow-Through Financing
CRANBROOK, BC / ACCESSWIRE / July 21, 2023 / Eagle Plains Resources Ltd. (TSX-V:EPL), ("the Com...
About this update from Eagle Plains Resources Ltd.
[{"type":"text","content":"Eagle Plains Closes First Tranche of Flow-Through FinancingCRANBROOK, BC / ACCESSWIRE / July 21, 2023 / Eagle Plains Resources Ltd. (TSX-V:EPL), (\"the Company\") announces that the Company has closed the first tranche of a non-brokered private placement (\"the Private Placement\") to arms-length and non-arms-length investors as announced on July 19th, 2023. Eagle Plains has closed subscriptions for a total of 790,000 units at a price of $.20 CDN per unit for gross proceeds of CDN $158,000. Each unit consists of a flow-through common share and one-half non-flow-through common share purchase warrant, each whole warrant exercisable at $.30 CDN for a 24-month period. Directors of the Company have approved an overallotment of up to 10% of the units.The common share purchase warrants are subject to an accelerated expiry at the option of the Company if the published closing trade price of the common shares on the TSX Venture Exchange is greater than or equal to $.50 for any 20 consecutive trading days, in which event the holder may 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.No finder's fees were paid for subscriptions received during the first tranche closing. Certain directors and insiders of the Company participated in the Private Placement for proceeds of CDN $83,000 (415,000 units). Such participation represents a \"related-party transaction\" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), but the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction, nor the consideration paid, exceed 25% of the Company's market capitalization.Maximum gross proceeds of the offering are expected to be $1,000,000 CDN (excluding 10% over-allotment if warranted). Proceeds from the sale of units will be used to fund additional exploration of the Vulcan project and/or the company's various projects in British Columbia, Saskatchewan and Yukon. Flow-through funds will qualify as Canadian exploration expenses as defined in the Income Tax Act and wil...