Eagle Plains sells seven claims in Saskatchewan

Executive Summary

• Eagle Plains Resources Ltd. has entered into a purchase and sale agreement to acquire seven non-core claim blocks (totaling 4,711 hectares) from Trident Resources Corp.
• The transaction is valued at $5,000 in cash, with Eagle Plains retaining a 2% net smelter royalty (NSR) on the properties.
• The deal is classified as a related party transaction because Tim Termuende, a director and officer of Eagle Plains, is also a director of Trident.

Key Details

• Transaction Structure: Eagle Plains purchases a 100% interest in seven individual non-core claim blocks from Trident Resources Corp.
• Asset Details: The properties total 4,711 hectares and are located in the La Ronge gold belt, contiguous with Trident's existing landholdings.
• Consideration: Cash payment of $5,000.
• Royalty Terms: Eagle Plains retains a 2% net smelter royalty (NSR) on all claims. Trident has the option to purchase one-half of this royalty for $1 million.
• Related Party Status: The transaction is non-arm's-length. Tim Termuende serves as a director and officer of Eagle Plains and as a director of Trident.
• Regulatory Compliance: The company relies on exemptions from formal valuation and minority shareholder approval under Multilateral Instrument 61-101 (MI 61-101).
  • Exempt from formal valuation under section 5.5(b) as Eagle Plains securities are not listed on specified markets.
  • Exempt from minority approval under Section 5.7(1)(a) as the fair market value is not more than 25% of the company's market capitalization.
• Exchange Approval: The agreement constitutes a reviewable transaction under TSX Venture Exchange Policy 5.3 and is subject to acceptance by the TSX Venture Exchange.
• Qualified Person: Charles C. Downie, PGeo, reviewed and approved the scientific and technical disclosure.

Notable Quotes

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