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Helicopter arriving for geological crew pick up in the East Kootenays

Investor Information

Welcome to Eagle Royalties

Eagle Royalties is another Eagle Plains Resources spin-out company. Eagle Royalties (CSE:ER) was created by way of plan of arrangement in Q2 2023 with the bulk of Eagle Plains' mineral royalty assets. The spin-out was conducted to spotlight the value of these royalties, reward shareholders of Eagle Plains with a new share on a 1 for 3 basis and to make these assets readily available for acquisition.

Eagle Royalties flagship is the Aurmac/McQuesten royalty which overlies a portion of Banyan Gold Corp’s gold discovery at their AurMac Property located in the central Yukon Territory.

Corporate History

Eagle Royalties Ltd. was created in May 2023 from the spin-out of over 50 Eagle Plains Resources (TSV-V:EPL) royalty assets located across western Canada. The parent company, Eagle Plains Resources, has been operating as a mineral explorer in western Canada since 1992 and has performed 4 spin-outs since 2006 including the latest, Eagle Royalties Ltd (CSE:ER).

The intention of these spin-outs were to spotlight the value of the assets involved, simplify their corporate structure and make them available for M&A activity. This strategy has resulted in over $100,000,000 of value being created for the shareholders of the first 3 spin-outs.

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Helicopter incoming for crew pick up at Ice River Complex in 2012
Corporate Objective
  • Maximize the value of the royalty assets
  • Add value through royalty acquisition and continuing exploration
  • Package royalties for M&A

The Royalties

Since its formation in 1992 Eagle Plains Resources began assembling, what became over the next 30 years, a large portfolio of mineral royalties covering a wide range of commodities located in areas of active mining, advanced development and exploration. These include the AurMac/McQuesten Royalty which overlies portions of Banyan Gold Corp’s 7M oz gold discovery at their Aurmac Property, as well as a group of Hecla Mining’s claims in the Keno Hill District. Other royalty areas include claims at Eskay Creek operated by Skeena Resources, Knife Lake operated by Rockridge Resources and numerous other royalties located throughout western Canada.

While Eagle Plains had held many of these royalty interests for years, management was of the opinion that their true value was not reflected within the diverse holdings of Eagle Plains Resources and that their potential would be more readily identified as a stand-alone company. The result was the creation of Eagle Royalties Ltd. through a plan of arrangement and a new share distributed to Eagle Plains investors on a one for three basis.

What is a Royalty?

Net Smelter Royalty (NSR) Explained

According to Wikipedia, a Net Smelter Return (NSR) is the net revenue that the owner of a mining property receives from the sale of the mine's metal/non metal products less transportation and refining costs. As a royalty it refers to the fraction of net smelter return that a mine operator is obligated to pay the owner of the royalty agreement. The royalty is paid in variable or fixed payments based on sales revenue received by a mining operator in return for mining output. It is contingent only on the sales price and quantity of product sold.

The term is named so due to the fact most of the time, mining output sold requires further processing by smelters; the mining products purchased directly by smelters are sold to them for a discounted (net) price based on how much further processing is needed. The mining lease specifies the selling price (prices are different in spot and forward markets) and is used to verify the exact amount of product that's produced and sold between royalty payments.

One advantage NSR royalties have over other royalties is that usually, payments are higher in the short term because capital costs and exploration costs cannot be used as deductions (some royalties don't have to be paid until after other costs such as loans/amortization are taken care of). Also, mine life and royalty expiration dates need to be taken into consideration. The royalty can be called a Net Value Royalty when deductions are based solely on the contract.

Alternatively a Gross Smelter Return is a percentage of gross revenue paid by mine owner that isn't subject to any deductions.

 

Share Structure

Shares Issued 

Assigned Options

Warrants

Fully Diluted

Sept / 2024

57,060,310

3,700,000

5,005,998

65,766,308

Eagle Royalties Ltd. (CSE:ER) was created by way of 'Plan of Arrangement' in May 2023 and is the fourth spin-out of Eagle Plains Resources (TSX-V:EPL) since 2006. Eagle Plains has been operating for 30 years and never conducted a share roll-back.

Investor Resources

Corporate Presentation

Corporate Brochure 

 

For more information about Eagle Royalties, please contact:

Mike Labach
Corporate Development
Phone 1.866.HUNT ORE / 1.866.486.8673
Email: info@eagleroyalties.com

Eagle Royalties Trading for August 2024

House Bought $Val Ave Sold $Val Ave
68 Leede 82,500 8,250 0.10 0

n/a

83 Research Cap 60,000 6,775 0.11 0

n/a

85 Scotia 168,000 17,639 0.11 119,699 13,181 0.11
7 TD Sec 15,147 1,733 0.11 6,619 697 0.11
80 National Bank 8,511 893 0.11 1 0 0.00
36 Latimer 5,202 539 0.104 5 0 0.00
14 Virtu ITG 15,656 1,796 0.12 15,058 1,505 0.10
39 Merrill Lynch 0

n/a

132 14 0.11
79 CIBC 10,000 1,050 0.11 10,264 1,126 0.11
53 Morgan Stanley 0

n/a

633 66 0.10
33 Canaccord 0

n/a

3,500 352 0.10
57 Interactive 0

n/a

3,601 377 0.11
28 CI 0

n/a

5,000 525 0.11
89 Raymond James 0

n/a

9,500 950 0.10
9 BMO Nesbitt 0

n/a

9,531 963 0.10
2 RBC 13,000 1,430 0.11 31,000 3,325 0.11
88 Credential 0

n/a

24,642 2,587 0.11
62 Haywood 0

n/a

62,475 6,559 0.11
1 Anonymous 986 97 0.10 77,342 7,973 0.10
TOTAL 379,002 40,202 0.11 379,002 40,200 0.11

Investment & Technical Conferences

Dates Name Location Registration

November 6, 
2024

TakeStock Investor Forum

Petroleum Club 
319 - 5th Ave SW 
Calgary, AB

https://takestocklive.com/ 
email: office@takestockab.com

Jan 19 - 20, 
2025

Vancouver Resource 
Investment Conference 

Vancouver Convention 
Center West 
1055 Canada Place 
Vancouver, B.C.

604 379 2740 
www.cambridgehouse.com 
email: info@cambridgehouse.com

Jan 20 - 23, 
2025

AME Roundup

Vancouver Convention 
Center East 
1055 Canada Place 
Vancouver, B.C.

604 630 3921 
www.roundup.amebc.ca 
email: roundup@amebc.ca

March 2 - 5, 
2025

Prospectors & Developers 
Association of Canada Convention

Metro Toronto 
Convention Center 
255 Front Street West 
Toronto, ON

416 362 1969 
www.pdac.ca/convention 
email: convention@pdac.ca

April 8-9, 
2025

Kamloops Exploration Group

Coast Kamloops Hotel 
Convention Center 
1250 Rogers Way 
Kamloops, BC

250 320 2411 
www.keg.bc.ca/delegate/booths.htm 
email: kamloopsexplorationgroup@gmail.com

Accounting Information - Eagle Royalties Plan of Arrangement

For accounting purposes the adjusted cost basis (ACB) of the Eagle Royalties Ltd. share is to be 33.54% of the pre-split Eagle Plains share purchase value.

 

Other Corporate Information

For more information about the spin-out Plan of Arrangement that created Eagle Royalties Ltd. please visit the following link:

2023 Information Circular