Toronto, Ontario--(Newsfile Corp. - March 21, 2017) - Eagle Graphite Incorporated (TSXV: EGA) (FSE: NJGP) (OTC: APMFF) ("Eagle Graphite", "Eagle", or the "Company") is pleased to announce the signing of a Heads Of Agreement to acquire Eurocan Mining GmbH ("Eurocan"), a private Austrian mineral exploration company, from its current beneficial owner, Eurocan Mining Anstalt ("EMA" of Lichtenstein).
Eagle Graphite is acting on its view that the Eurocan portfolio holds significant unrecognized potential, and represents an exceptionally compelling economic opportunity for Eagle shareholders. It is the intention of the Company to place the Eurocan portfolio into its own subsidiary company called Stella Gold, and distribute those shares to shareholders upon listing that subsidiary company on a suitable international exchange as soon as possible.
Eurocan's principal asset is a portfolio of approximately 300 mineral claims covering a combined area of approximately 148 km2 in South-Central Austria. The 5 project areas of Schellgaden North, Schellgaden South, Kreuzeck West, Kreuzeck East and Goldeck-Siflitz, are located over former mines that in most cases have historically produced gold. By way of example, mining in the Schellgaden region is believed to date as far back as pre-Roman times, in addition to periods ranging from the Middle Ages up until World War II.
"The management of Eagle Graphite is always striving to introduce value to our shareholders and we see this project as a relatively straightforward way of immediately providing that value." states Torey Marshall, Eagle's EVP of Business Development. "Rather than dilute our core focus on graphite and be a distraction to our team, putting this into its own vehicle will give it an enormous boost, which therefore translates into increased value for our shareholders. We feel that we are acquiring this portfolio at a price which is extremely attractive when compared against typical metrics for similar transactions over recent years. Eagle Graphite is moving rapidly with 2017 shaping as a watershed year, and the Management and Board look forward to keeping all shareholders and stakeholders updated on the progress of its core business, and other opportunities as they arise."
Schellgaden North Project
Most notable in Eurocan's portfolio is the group of 36 claims comprising the Schellgaden North Gold Project, which include the former Stüblbau and Schulterbau Mines. These mines alone have historically produced over 150,000 ounces of gold. The Schellgaden Project has a historic Resource Estimate, though more work will be undertaken to both verify these numbers and to understand the possible size of exploration targets in the other project areas.
Historical resource estimates have been obtained from the report entitled "Brief Compilation Of The Present Status Of Gold-(-Silver-Base-Metal) Resources At The Schellgaden North Project Area And Of The Fundkofel Gold Mine" prepared in 2010 for Eurocan by HRK International GeoConsulting Services. Historical resource estimates, as expressed in this report for the Schellgaden North Project, were as follows: