BRITISH COLUMBIA — Prize Mining of Calgary and Eagle Plains Resources of Cranbrook, BC, have created a joint venture to put the Yellowjacket zone on Prize’s Atlin gold property into production.
Eagle Plains has agreed to purchase a 40% interest in the project by providing working capital totalling $2.0 million. The funds will be used to clear liens and obligations on the property and to complete mill upgrades, engineering, permitting and environmental compliance. Eagle Plains will receive 60% of all net proceeds after start-up until its loan is repaid, at which time its interest will revert to a 40% working interest. Eagle Plains also has the option of increasing its working interest to 60% by making payments to Prize totalling $2.0 million over six years. The deal is subject to regulatory approval and other customary conditions.
The Yellowjacket zone has a non-compliant resource of 453,500 tonnes grading 10.26 g/t Au. The history of the Atlin property is available at www.PrizeMining.com.