Eagle Plains Resources Ltd fka EPL

[btrain]

Jan 19 News for 'EPL.V/EGPLF' - (Providence Capital Announces Strategic Investment)


VANCOUVER, BRITISH COLUMBIA, Jan 19, 2011 (MARKETWIRE via COMTEX) -- Providence
Capital Corp. (TSX VENTURE: PV) ("Providence" or the "Company") wishes to
announce that it has arranged a non-brokered private placement of 1,000,000
shares at a price of $4.00 per share with Teck Resources Limited ("Teck") for
total proceeds of $4,000,000.

The proceeds from this strategic investment will facilitate a more aggressive
work program on the Iron Range Project, under which Providence holds the option
to earn a 60 percent interest from Eagle Plains Resources Ltd. ("Eagle Plains").
In addition, Teck will provide access to additional technical support and
organizational expertise. As the owner and operator of the historic Sullivan
Mine, Teck brings a wealth of geological experience invaluable to the Iron Range
Project.

Providence and Eagle Plains continue to test structural features and the
stratigraphic interval known to host the Sullivan deposit, located 70km to the
north. Current drilling is targeting both precious metal and base metal
mineralization, following up on the recent program which intersected two
intervals of gold-bearing massive sulphide mineralization, the lower interval
which resides at a stratigraphic position interpreted to be at or near the same
interval which hosts the Sullivan deposit (see PV/EPL news release December
21st, 2010).

"With the combination of Teck's historic knowledge and experience within the
surrounding area and the skilled geological personnel of our partner Eagle
Plains, we have a world class exploration and development team that will now be
well funded throughout 2011," stated Steve Bajic, President of Providence.

An additional term of Teck's investment in Providence provides Teck an option to
increase its interest in the Company to 9.9% by completing an additional private
placement. This option may be triggered as follows:

Providence may provide notice to Teck at any time after at the later of (i)
three months after the closing of the current private placement; or (ii) after
Providence incurs additional expenditures of $1,600,000 on the Iron Range
project, at which point Teck may elect to exercise the option or let it expire.
The pricing of the additional placement in the Company will be at a price per
share equal to a 40% premium to a 10 day trading average; or (ii) a 10% to 40%
premium (based on certain conditions) to the price of any coinciding third party
financing announced by Providence at the time of the notice.

Should the Company not provide Teck notice as outlined above prior to the later
of (i) nine months after the closing of the current private placement; or (ii)
upon Providence incurring an aggregate of $3,400,000 in additional expenditures
on the Iron Range project, Teck may elect to increase its interest in the
Company to 9.9% at a price per share equal to a 40% premium to a 5 day trading
average. If Teck fails to exercise this right, the option to increase its
interest to 9.9% expires.

Teck also has the right to maintain its percentage ownership in the Company by
participating in future financings during a two year period provided that it
holds at least a 3% shareholding in the Company. Teck has also been granted a
right of first offer on the Iron Range project should the Company wish to sell
its interest in the project during the same period.

Tim J Termuende, President and CEO of Eagle Plains, stated recently, "We welcome
the participation of Teck to this exciting project. The confidence shown by
Teck's current involvement coupled with its considerable financial and technical
capabilities can only serve to significantly benefit the project as it moves
forward."

Providence will also establish a Technical Advisory Committee which will include
personnel from Teck, Eagle Plains and Terralogic Exploration Services to serve
as a forum through which all parties can engage and review work programs,
budgets, and results.

Providence holds the option to earn a 60 percent interest in the Iron Range
Property by spending $3-million on exploration, making $500,000 in cash payments
and issuing one million shares to EPL over four years. Approximately $700,000
has been spent to date as contemplated by the Joint Venture Agreement with Eagle
Plains Resources.

In connection with the private placement and subject to regulatory approval, the
Company may pay finder's fees in cash or securities to eligible finders in
accordance with the policies of the TSX Venture Exchange. All securities will be
subject to a four month hold period.

Iron Range project summary

The Iron Range deposits were originally staked in 1897, and were covered by
Crown Grants held by Cominco Ltd. and the Canadian Pacific Railway. Eagle Plains
staked the current claims immediately after the Crown Grants reverted in 2000,
and have been exploring the property since then. Exploration work to date
includes geological mapping, geochemical surveys, diamond drilling and a
690-line-kilometre airborne geophysical survey. The Iron Range project is owned
100 per cent by Eagle Plains and holds no underlying royalties or encumbrances.
An additional 35,800 hectares of claims were added to the existing land package,
resulting in a total of 56,200 ha -- an area approximately 11 km by 50 km. The
land package now covers over 30 km of the Iron Range structure, most of it
unexplored.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.





Contacts:

Providence Capital Corp.

Steve Bajic

President

[phone]

[phone] (FAX)

www.providencecapital.ca





SOURCE: Providence Capital Corp.




CONTACT: http://www.providencecapital.ca