Eagle Plains Resources Ltd V.EPL

New Press Release - Eagle Plains Provides Update on Expanded Vulcan Drill Program, Announces Flow-through Financing

CRANBROOK, BC / ACCESSWIRE / July 20, 2023 / Eagle Plains Resources Ltd. (TSXV:EPL) ("EPL" or "Eagle Plains" or the "Company") is pleased to report that diamond drilling activity continues ahead of pace at its 100%-owned Vulcan Project, located 30km west of Kimberley, BC. To date, a total of over...read article.

[GoldInsect777]

Well, that answers our question of why the price dropped. Some people obviously knew the PP was coming and wanted to get ahead of the game. I'm surprised they're doing this given that they have $10 million ib the treasury, but I overall see it as a good thing if they are encouraged enough to expand the drill program (like it was said would be done before the drill campaign started). 

[NineLives]

I know flow thru shares offer a tax advantage for those who are part of the placement but with all that cash on hand was this really necessary ? $8 mill at 5% is $400k a year. Take it out of cash and in 2 years you'd have made it all back with the cash balance remaining. Baffled.

[GoldInsect777]

It is somewhat of a shock to me too. I was actualy on the phone with IR a few days ago regarding problems that I'm still having with my ER share issuance, and he brought up towards the end in a side discussion about EPL being off of "the financing treadmill" and how they are constantly making the health of their treasury their #1 priority.  With that said, this financing would

[NineLives]

Flow thru shares are always priced a little higher in price than a regular placement. So in effect management is effectively saying to the market our share price is only worth about 18 cents. To me that's ridiculous with a company generating over $20 million in revenue annually. The more I think about this additional share issuance the more stupid it looks. Creating any form of dilution when

[GoldInsect777]

Very true and point taken. And in all fairness, if I owned the amount of shares that you do, I would probably be a lot more critical. The only possible "good" reason I can think why they are doing the financing at basically current share price is perhaps they had to take the stocks liquidity into consideration? As junior exploration companies go, EPL probably has less volume than most

[NineLives]

Well it's done now (I won't dwell on it) so here's hoping Vulcan delivers on the final drill round. Onwards and downwards, the drills that is, not the share price !

[stubbyfellow202]

I don't post often but after having a lengthy conversation with company I thought I would add a comment or two. Tim runs a very professional company and they had a budget for Vulcan. As per the news releases results to date are very encouraging but not economical yet. It is very expensive to bring drill back and setup again. So to get another kick at the cat without reducing cash on hand they

[GoldInsect777]

Thanks stubbyfellow.  You've confirmed what my suspicions roughly were already. It would be great if they could hit the source of mineralization at Vulcan this year but, even if they don't, I wouldn't want them to completely abandon the project - just go back to the drawing  board and try again next drill season.  

[HornbyBay]

Tim and the boys are on a quest for Sullivan II.  The risk/reward is sufficient at Vulcan that I don't mind the occasional straying from the project generator business model to perform limited 100% drill programs.  Go big or go home. Disclosure:  I own shares of Eagle Plains, just my opinions, not investment advice.