Eagle Plains Resources Ltd. said Thursday it plans to spinoff its Yellowjacket Gold Project, located in northwestern British Columbia, to a newly formed unit.

Under the plan, shareholders of Eagle Plains will receive shares of Yellowjacket Resources Ltd., as the new company will be called, in a ratio of three to one. Eagle Plains shareholders will vote on the proposal in November, the company said.

Eagle Plains will hold approximately 15 percent of the total common shares of Yellowjacket, expected to be 33 million, resulting in the transfer from Eagle Plains to Yellowjacket of no less than $100,000 cash. Eagle Plains will transfer to Yellowjacket an additional $500,000 cash.