Eagle Plains Resources Inc. [EPL-TSXV; OTC-EGPLF] said Wednesday April 11 it has received approval from the Court of Queen’s Bench of Alberta, marking the final step in completing the spin-out of Taiga Gold Corp. [TGC-CSE]. Shareholders of record on April 12, 2018, will receive one share of Taiga for each two shares of Eagle Plains. Shareholders voted overwhelmingly in favour of the transaction at a special meeting held on April 6, 2018, in Cranbrook, British Columbia.
It is expected that Taiga securities will be listed for trading on the CSE on or around April 23, 2018 under the symbol TGC.
Eagle Plains will retain a 19.9% stake in Taiga at the close of the transaction.
Eagle Plains is a prospect generator with a portfolio of projects spread throughout western Canada. Since 2011, the company has made deals with joint venture partners that have generated over $16.5 million in exploration spending.
On Wednesday, the shares eased 16.67% or $0.04 to 20 cents.
Taiga Gold is being spun out to contain some of the company’s better projects in Saskatchewan. The rationale is to allow for the oversight, direction and financing of the Fisher Project, which is located along a structural trend that is hundreds of kilometres long and ends to the south around the Homestake Mine in the Black Hills of South Dakota.
SSR Mining Inc. [SSRM-TSX, NASDAQ] is conducting the drilling on the Fisher Project, which is contiguous with SSR’s Seebee gold operation. SSR can earn up to an 80% interest in Fisher by making $3.3 million in payments to Eagle Plains and spending $4 million on exploration.
As announced by Eagle Plains on March 21, 2018, SSRM has commenced phase one of an 18,000 metre drilling campaign within Fisher property boundaries and currently has two drills in operation.
Meanwhile, Eagle Plains said advanced planning is underway for the commencement in June of a 1,250-metre, three-hole drill program on the company’s 100%-owned Iron Range Project located 10 km west of Creston, in southeastern B.C.
The Iron Range property was acquired by staking by Eagle Plains in 1999 and covers 70,000 hectares, overlying the regional Iron Range Fault System. Management of Eagle Plains considers the Iron Range Project to hold excellent potential for the presence of both iron-oxide gold and Sullivan-style lead-zinc-silver sedimentary-exhalative (SEDEX) mineralization.
Rocks within the Iron Range property boundaries are of the same age and composition as those which host the Sullivan deposit, located 70 km to the east.
The Sullivan Mine was discovered in 1892 and is one of the largest sedex deposits in the world.