Eagle Plains and Prize Mining to Produce Gold at Yellowjacketadmin
Eagle Plains Resources Ltd. jointly announce that the companies have executed a formal agreement whereby the two parties will form a joint-venture to immediately facilitate the production of gold and conduct further exploration and development of the Yellowjacket Zone on the Atlin Gold Property, located 9 kilometers east of Atlin, in north-western British Columbia.
Under terms of the agreement, Eagle Plains will purchase a 40% interest in the project by providing $2,000,000 CDN in working capital, effective at closing of the agreement. These funds will be used to clear existing liens and obligations on the Property, in addition to completing upgrades of the existing mill facility and covering costs related to engineering, permitting and environmental compliance. Eagle Plains will in turn receive 60% of all proceeds of production up to $2,000,000, at which time it will revert to a 40/60 working interest. Eagle Plains will have the option of increasing its working interest to 60% by making payments to Prize totaling $2,000,000 by the sixth anniversary of the agreement. It is expected that commercial production activity will commence by the third quarter of 2009.
Tim Termuende, President and CEO of Eagle Plains states “we are excited about participating with Prize Mining on this project. We recognize the quality and incredible amount of work required to bring the project to this stage, and are pleased to be able to provide financial and technical assistance to advance it, ultimately to the benefit of the local community, the Taku River Tlingit First Nation, Prize Mining and shareholders of Eagle Plains”. Harry McGucken, President of Prize Mining, added “we are extremely pleased with this new association and what Eagle Plains and its team bring to this project. The addition of their technical expertise will now enable the project to get to the next level of development for the benefit of all concerned”.
The Yellowjacket Joint Venture is committed to working on the Yellowjacket project in a sustainable and responsible manner. The project is situated within the traditional territory of the TRTFN, and as such, will only move forward with the trust and support of the TRTFN leadership and membership, and the people of the Atlin community. The project proponents look forward to establishing a strong relationship with all stakeholders, based on responsible economic and environmental stewardship and mutual respect.