Eloro Resources Closes C$9.775 Million Bought Deal Financing
May 19 2022 - 8:24AM
Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V:
ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce that
it has closed its previously announced bought deal financing of
3,007,710 units of the Company (the "Units") at a price of C$3.25
per Unit for gross proceeds to the Company of C$9,775,057.50 (the
"Offering"). The Offering was underwritten on a bought deal basis
by Cormark Securities Inc. as underwriter (the “Underwriter”),
pursuant to an underwriting agreement dated May 16, 2022 between
the Company and the Underwriter. Haywood Securities Inc.
participated as a special selling group member in connection with
the Offering. The Offering included the exercise in full by the
Underwriter of the over-allotment option granted by the Company
pursuant to the terms of the Offering. Each Unit consists of one
common share in the capital of the Company (each a “Common Share”)
and one-half of one Common Share purchase warrant of the Company
(each whole warrant, a “Warrant”). Each Warrant entitles 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 securities issued under the Offering were
qualified for distribution pursuant to a prospectus supplement
dated May 16, 2022 (the “Supplement”) to the Company’s short form
base shelf prospectus dated May 11, 2022.
The net proceeds from the Offering will be used
for continued exploration and development of the Company’s Iska
Iska project in Bolivia, as further set out in the Supplement filed
on the Company’s SEDAR profile at www.sedar.com.
In connection with the Offering, the Company
paid the Underwriter a cash commission equal to 6% of the gross
proceeds of the Offering (for a total cash commission of
C$586,503.45) and issued to the Underwriter and its selling group
members that number of non-transferable compensation options (the
“Compensation Options”) equal to 6% of the aggregate number of
Units sold under the Offering (for a total of 180,462 Compensation
Options). Each Compensation Option entitles the holder to acquire
one Common Share at a price of C$3.25 per Common Share for a period
of 24 months following the closing of the Offering.
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 under
Eloro’s 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.
For further information please contact
either Thomas G. Larsen, Chairman and CEO or Jorge Estepa,
Vice-President at (416) 868-9168.
Information in this news release may contain
forward-looking information. Statements containing forward-looking
information 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
(forward-looking statements in this news release include, without
limitation, statements regarding the use of proceeds from the
Offering). 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. The Company does not intend to update
any such forward-looking information, except in accordance with
applicable laws.
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.
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