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TORONTO, May 13, 2022
/CNW/ - Eloro Resources Ltd. (the "Company" or
"Eloro") (TSXV: ELO) (OTCQX: ELRRF) (FSE: P2QM) is pleased
to announce that in connection with its previously announced bought
deal financing, the Company and Cormark Securities Inc., (the
"Underwriter") have agreed to increase the size of the
previously announced financing. The Underwriter has agreed to
purchase, on a bought deal basis, 2,615,400 units of the Company
(the "Units") at a price of C$3.25 per Unit for gross proceeds to the Company
of approximately C$8.5 million (the
"Offering"). Each Unit will consist of one common share in
the capital of the Company (each a "Common Share") and
one-half of one common share purchase warrant (each whole warrant,
a "Warrant") of the Company. Each Warrant shall entitle the
holder to acquire an additional Common Share at a price of
C$4.75 for a period of 24 months
following the closing of the Offering.
The Company has agreed to grant the Underwriter an option (the
"Over-Allotment Option") to sell an additional 392,310
Units, such option being exercisable in whole or in part at any
time prior to the date that is 30 days after the closing of the
Offering, to cover over-allotments, if any, and for market
stabilization purposes. In the event that the Over-Allotment Option
is exercised in full, the aggregate gross proceeds of the Offering
to the Company will be approximately C$9.775
million.
The net proceeds from the Offering will be used for exploration
and development at the Company's projects in Bolivia and Peru, and for general working capital and
corporate purposes as set out in the Prospectus Supplement (defined
below).
The Units will be offered by way of a prospectus supplement (the
"Prospectus Supplement") to the Company's existing base
shelf prospectus in all of the provinces of Canada (other than the Province of
Quebec). The Prospectus Supplement
(together with the related base shelf prospectus) will be available
on SEDAR at www.sedar.com.
The Offering is scheduled to close on or about May 19, 2022 and is subject to certain conditions
including, but not limited to, the receipt of all necessary
regulatory and other approvals including the approval of the
TSXV.
The securities offered in the Offering have not been, and will
not be, registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act") or any U.S. state securities
laws, and may not be offered or sold in the United States or to, or for the account or
benefit of, United States persons
absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor there be
any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a
portfolio of gold and base-metal properties in Bolivia, Peru
and Quebec. Eloro has an option to
acquire a 99% interest in the highly prospective Iska Iska
Property, which can be classified as a polymetallic
epithermal-porphyry complex, a significant mineral deposit type in
the Potosi Department, in southern Bolivia. A NI 43-101 Technical Report on
Iska Iska, which was completed by
Micon International Limited, is available on Eloro's website and
under its filings on SEDAR. Iska
Iska is a road-accessible, royalty-free property. Eloro also
owns an 82% interest in the La Victoria Gold/Silver Project,
located in the North-Central Mineral Belt of Peru some 50 km south of Barrick's Lagunas
Norte Gold Mine and Pan American Silver's La Arena Gold Mine. La
Victoria consists of eight mining concessions and eight mining
claims encompassing approximately 89 square kilometres. La Victoria
has good infrastructure with access to road, water and electricity
and is located at an altitude that ranges from 3,150 m to 4,400 m
above sea level.
Information in this news release may contain forward-looking
information. Statements containing forward looking information such
as the closing of the Offering, use of proceeds, and TSXV approval,
express, as at the date of this news release, the Company's plans,
estimates, forecasts, projections, expectations, or beliefs as to
future events or results and are believed to be reasonable based on
information currently available to the Company. There can be no
assurance that forward-looking statements will prove to be
accurate. Actual results and future events could differ materially
from those anticipated in such statements. Readers should not place
undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Eloro Resources Ltd.
