Eagle Bay Resources Corp [EBR-CSE], a company that aims to explore for rare earth elements in British Columbia, were scheduled to begin trading on the Canadian Securities Exchange, Wednesday.
The company’s key asset is the 100%-owned CAP rare earth element property, which covers 29 mainly contiguous claims over 6,900 hectares in British Columbia, about 85 kilometres northeast of Prince George.
The CAP property shares are contiguous border with Defense Metals Corp.’s [DEFN-TSXV, DFMTF-OTCQB, 35D-FSE] 1,708-hectare Wicheeda Rare Earth Element (REE) Property, which hosts an indicated mineral resource of 4.89 million tonnes averaging 3.02% LREO (Light Rare Earth Oxide), and an inferred mineral resource of 12.1 million tonnes averaging 2.9% LREO.
“This is clearly an emerging rare earths district with significant discovery having been advanced by Defense Metals Corp., with which we share a contiguous border, moving towards realizing its full potential and we intend to be part of this,’’ said Eagle Bay President and CEO David Hodge.
The claims that make up the CAP property were acquired under agreements with Arctic Star Exploration Corp. [ADD-TSXV] and Gambler Gold Corp.
Back in February 11, 2019, Eagle Bay issued 17 million common shares to Arctic Star priced at $0.025 per share, or $425,000. A number of the claims acquired from Arctic Star are subject to a 2.0% net smelter return royalty. Under the agreement 1% of the NSR is paid to an Alberta numbered company held by the spouse of Jody Dahrouge, an Eagle Bay director. The other 1% is payable to Zimtu.
Eagle Bay said it paid $150,000 for the claims acquired from Gambler gold.
The company said it also acquired a 100% interest in certain mineral claims known as the “Wicheeda Extension. In return, it paid $60,000 and issued 800,000 shares at $0.075 to Zimtu, a company which owns 40% of Eagle Bay’s issued and outstanding shares. Dave Hodge is the President and CEO of Zimtu.
Eagle Bay currently has 52.8 million shares issued and outstanding. Of the 29.5 million owned by management, directors and Zimtu Capital Corp. 10% will be released from escrow in connection with the commencement of trading, the company said, while 26.6 million will remain in escrow, with batches of 4.4 million released every six months over a period of three years.
“In the mid 2000s we recognized the potential for both REEs and niobium mineralization within the carbonatites proximal to the Wicheeda REE showings,’’ said Dahrouge. “We acquired a number of claims over the years southeasterly from Wicheeda to the CAP property, which covered a large circular magnetic anomaly,’’ Dahrouge said. “We have discovered several carbonatites since then and are extremely encouraged by the large number of mineral showings.’’