Mining’s old guard needs strong medicine
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TORONTO, ONTARIO–(Marketwire – Oct. 21, 2011) – Eloro Resources Ltd. (TSX VENTURE:ELO)(FRANKFURT:P2Q) (“Eloro” or the “Company”) is pleased to announce that it has closed the previously announced private placement of flow-through units (see Eloro news release dated September 1, 2011). Eloro closed the sale of 4,625,000 flow-through units at a price of $0.20 per unit for gross proceeds of $925,000. Eloro did not proceed with the sale of any non-flow-through units at a price of $0.18 per unit, as detailed in the September 1, 2011 press release.
Each flow-through unit is comprised of one Common Share issued on a “flow-through” basis under the Income Tax Act (Canada) (“ITA”) and one half of one Common Share purchase warrant (the “F-T Warrants”) issued on a “flow-through” basis under the ITA. Each whole F-T Warrant entitles the holder to purchase one non-flow-through Common Share of the Company at a price of $0.40 per share for a term of 18 months provided that, if the average closing price for the Common Shares on the TSX Venture Exchange is at least $0.60 per share for 20 consecutive trading days (following the expiry of the four month hold period), the F-T Warrants will expire unless they are exercised within ten business days (or such longer period of time as the Company may provide) after the Company provides notice to accelerate the expiry date.
In connection with the private placement, two arm’s length finders received as compensation 7% cash commission aggregating $57,400 and 287,000 finder’s warrants entitling the holders to purchase 287,000 Eloro Common Shares at a price of $0.40 per share for a term of 18 months, subject to the same acceleration provisions as the F-T Warrants.
The net proceeds from the private placement will be used to finance continued exploration at the Simkar Gold Property near Val d’Or, Quebec (the “Simkar Property”). One officer of the Company participated in the financing by subscribing for 125,000 flow-through units. All the securities issued pursuant to the private placement are subject to a four (4) month hold period. The private placement remains subject to TSX Venture Exchange final acceptance.
About Eloro Resources Inc.
Eloro Resources is an exploration and mine development company with a portfolio of gold and base metal properties in northern and western Quebec. The Company is focused on expanding the historic gold resources at its wholly-owned past-producing Simkar gold mine property (“Simkar Property”). The Simkar Property consists of two contiguous mining concessions totaling 226 hectares in Louvicourt Township, approximately 20 km east of Val-d’Or, Quebec. Since 2009, Eloro has completed 15,035 m of drilling on the Simkar Property and has identified two new mineralized zones below the historic workings and two near surface zones in a diorite unit south of the historic workings.
Eloro plans to pursue exploration work at the Simkar Property with the objective to outline quality gold resources in an established mining camp.
