Eloro Resources and Cott Oil and Gas Sign Definitive $5 Million Option Agreement for a 25% Interest in La Victoria Project, Peru
Eloro Resources and Cott Oil and Gas Sign Definitive $5 Million Option Agreement
for a 25% Interest in La Victoria Project, Peru
Toronto, Canada, March 30, 2017 – Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q; “Eloro”) is pleased to
announce it has signed a Definitive Option and Joint Venture A greement (the “Agreement”) with Cott Oil and
Gas Limited (“Cott”)(ASX: CMT), granting Cott an option to acquire up to a 25% interest in Eloro’s wholly-
owned La Victoria Gold Silver Project (“La Victoria” or the “Property”), by completing up to C$5 million in
expenditures by July 31, 2018, the details of which were announced by Eloro on March 3, 2017. The Property
covers approximately 80.4 square kilometres and is held by a Peruvian-based Eloro subsidiary and is located
in Pallasca Province, Ancash Department, in the prolific North-Central Mineral Belt of Peru.
The Agreement
Under the terms of the A greement, Cott can earn a n initial 10% interest in the Property by expending C$2
million (exclusive of all app licable taxes) by or before October 30, 2017 (“Stage 1 Earn -in Period”), and a
further 15% interest (“Stage 2 Earn- in Period”) by expending an additional C$3 million (exclusive of all
applicable taxes) by or before July 31, 2018. At the end of either the S tage 1 Earn- in Period or the Stage 2
Earn-in Period, a joint venture would be formed between Eloro and Cott on the basis of their respective
interest in La Victoria on the typical terms for a joint venture, with Eloro being the operator and the typical
dilution provisions.
Pursuant to the Agreement, Cott would grant Eloro a right of first refusal (“RFR”) pursuant to which Cott
would be obliged to give Eloro at least 60 days prior written notice of any proposed sale of any interest in the
Property to a third party and Eloro would have the right to exercise its RF R within 30 days of receipt of such
notice from Cott by matching the third party offer. Additionally, should Eloro propose to sell all or a majority of
its interest in the Property to a third party, E loro must first consult with Cott about the identity of the third party
and the proposed terms of sale. If Eloro proceeds with the sale, Cott will be obliged to sell its interest to the
third party on a pro rata basis in accordance with the terms of Eloro’s sale to the third party.
The Definitive Agreement is subject to, in the case of Cott, the approval of the ASX Limited and if applicable,
the shareholders of Cott.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company which ho lds a 100% undivided interest in the La
Victoria Gold/Silver Project, located in the prolific North- Central Mineral Belt of Peru. The La Victoria
Gold/Silver Project covers 80.4 square kilometers and is within 50 km of several large, low -cost producing
gold mines, with three producers visible from the property. Infrastructure in the area is good with access to
road, water, and electricity and is located at an altitude that ranges from 3,100m to 4,200m above sea level.
Eloro also holds a portfolio of gold and base-metal properties in northern and western Quebec.
About Cott Oil and Gas Limited
Cott is an ASX publicly -listed company that sold its oil and gas interests in late 2016 and has since been
looking to diversify into the mineral resource sector. The Chairman of Cott, Mr. Stephen Dennis, has been
actively involved in the mining industry for over 30 years and is also Chairman of several listed resource
companies in Australia. Mr. Dennis was for 8 years, up to 2015, Managing Director and CEO of CBH
Resources Limited, a significant producer of silver, lead and zinc , which is the Australian-based subsidiary of
Toho Zinc Co. Ltd., a Japanese company listed on the Tokyo Stock Exchange.
For further information, please contact Thomas Larsen, President and CEO or Jorge Estepa, Vice-
President of Eloro Resources Ltd. at (416) 868-9168.
20 Adelaide Street East, Suite 200, Toronto, Ontario CANADA M5C 2T6 Tel.: (416) 868 -9168 Fax: (416) 361 -1333
TSX.V Symbol: ELO www.elor oresources.com
Information in this news release may contain forward- looking information. Statements containing forward -
looking information express, as at the date of this new release, the Corpor ation's plans, estimates, forecasts,
projections, expectations, or beliefs as to future events of results and are believed to be reasonable based on
information currently available to the Corporation. 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 Provide r (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this release.
For additional technical information on the La Victoria Project, the reader is referred to the NI 43- 101
Technical Report on the L a Victoria Au- Ag Property, Ancash, Peru filed under Eloro's profile on SEDAR
(www.sedar.com).