Eloro Resources announces the filing of a preliminary short form
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TORONTO, March 08, 2021 (GLOBE NEWSWIRE) – Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce its previously announced bought deal financing (see Eloro press releases dated 2 March 2021 and March 3, 2021), it has filed a preliminary simplified prospectus with the applicable securities regulatory authorities in each of the provinces of Canada, with the exception of Quebec. Pursuant to the Financing, Haywood Securities Inc. and Cantor Fitzgerald Canada Corporation as co-lead and joint bookkeepers, and Cormark Securities Inc. as joint lead (collectively, the “Underwriters” ) have agreed to purchase, on a bought deal basis, 5,800,000 Units (the “Units”) at a price of C $ 3.75 per Unit (the “Issue Price”) for gross proceeds to the Company for C $ 21,750,000 (the “Offer”).
Each unit will consist of one common share (an “Common Share”) of the capital of the Company and one-half (1/2) of a common share purchase warrant (each common share purchase warrant whole, a “warrant”) of the company. Each warrant may be exercised to acquire one common share (a “warrant share”) at a price per warrant share of C $ 5.25 for a period of 24 months from the closing date. placement. The expiration date of the warrants may be brought forward by the Company at any time after the six-month anniversary of the closing date of the placement and before the expiration date of the warrants if the weighted average price according to of the volume of the Company’s common shares is greater than C $ 7.00 for 20 consecutive trading days, at which time the Company may accelerate the expiration date by issuing a press release announcing the reduced term of the warrants , after which the warrants will expire on the 20th calendar day after the date of this Release.
In addition, the Company has agreed to grant the underwriters an option to purchase up to an additional 15% of the number of units sold under the placement at a price per unit equal to the issue price, according to the same terms and conditions that the Placement, exercisable at any time, in whole or in part, up to the date which falls 30 days following the closing of the Placement.
The Company intends to use the net proceeds of the Offering primarily to continue exploration and development of the Company’s Iska Iska project in Bolivia. As of March 3, 2021, a total of 7,539 meters of diamond drilling has been completed in 12 underground holes at the Huayra Kasa workings and 11 surface holes at Iska Iska. On February 16, 2021, Eloro announced the addition of a second drilling rig to begin drilling on the Central Breccia Pipe target. Diamond drilling planned for the remainder of 2021 and the first quarter of 2022 is 51,000 meters, of which 6,000 meters are already budgeted and an additional 45,000 meters to be financed from the placement. Additional drills will be added in stages so that by July 2021, 4 surface drills are expected to operate with an expected production of 6,000 meters per month. This drilling will be carried out to explore and define a mineral resource in the Santa Barbara Breccia pipe, the Central Breccia pipe, the South Porco Breccia Pipe target and the Huayra Kasa Breccia pipe and underground works. The 45,000 meters include 6,000 meters of drilling on targets outside of Iska Iska and the Pache property located 20 kilometers southwest of Iska Iska. Eloro also intends to pay from the proceeds of the offering US $ 2,500,000 over the option price of US $ 10,000,000 under an option agreement to acquire a 99% interest. in the Iska Iska project.
The offering is scheduled to close on or about March 26, 2021 and is subject to certain conditions, including, but not limited to, obtaining all necessary regulatory and other approvals, including Exchange approval. TSX Venture and Securities Administrators.
The preliminary simplified prospectus still needs to be completed or amended. A copy of the preliminary simplified prospectus is available electronically at www.sedar.com. There will be no sale or acceptance of an offer to buy the securities until a visa for the final prospectus has been issued.
The securities offered under the Offer have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) or any securities law of a United States state, and may not be offered or sold in the United States or to, or on behalf of or for the benefit of, persons of the United States absent registration or any applicable exemption from the requirements of ‘registration of the US Securities Act and applicable US securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, nor any sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be illegal.
Dr. Bill Pearson, P.Geo., Executive Vice President Exploration of Eloro and Qualified Person as that term is defined in National Instrument 43-101, has reviewed and approved the technical contents of this press release.
Eloro is a mining exploration and development company with a portfolio of gold and base metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% stake in the highly promising Iska Iska property, which can be classified as a polymetallic epithermal-porphyry complex, a type of significant mineral deposit in the department of Potosi, in southern Bolivia. Eloro has commissioned an NI 43-101 technical report on Iska Iska, which has been completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a property accessible by road and free of rights. Eloro also owns an 82% interest in the La Victoria gold / silver project, located in Peru’s north-central mineral belt approximately 50 km south of Barrick’s Lagunas Norte gold mine and gold mine. The Pan American Silver Arena. Victoria consists of eight mining concessions and eight mining claims covering approximately 89 square kilometers. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude ranging from 3,150 m to 4,400 m above sea level.
For more information, please contact Thomas G. Larsen, President and CEO, or Jorge Estepa, Vice President at (416) 868-9168.
The information contained in this press release may contain forward-looking information. Statements containing forward-looking information express, as of the date of this press release, the Company’s plans, estimates, forecasts, projections, expectations or beliefs regarding future events or results and are considered reasonable based on the information. currently available to the Company (the forward-looking statements contained in this press release include, without limitation, statements regarding the completion of the Offer, the use of the proceeds of the Offer and the Company’s exploration plans on the Iska Iska property). There can be no assurance that forward-looking statements will prove to be correct. Actual results and future events could differ materially from those anticipated in these statements. Readers should not place undue reliance on forward-looking information.
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.