Eloro Resources Announces C$5 Million Bought Deal Financing
Eloro Resources Announces C$5 Million Bought Deal Financing
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION,
DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR
INTO THE UNITED STATES.
TORONTO, May 12, 2022 – Eloro Resources Ltd. (the “ Company” or “Eloro”) (TSX-V:
ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce that it has entered into an
agreement with Cormark Securities Inc. to act as sole underwriter (the “Underwriter”),
pursuant to which the Underwriter has agreed to purchase, on a bought deal basis,
1,538,480 units (the “Units”) at a price of C$3. 25 per Unit (the “ Issue Price”) for gross
proceeds to the Company of C$5,000,060 (the “Offering”).
Each Unit will consist of one common share (a “ Common Share”) in the capital of the
Company and one -half (1/2) of one common share purchase warrant (each whole
common share purchase warrant, a “ Warrant”) of the Company. Each Warrant shall be
exercisable to acquire one Co mmon Share (a “ Warrant Share”) at a price per Warrant
Share of C$4.75 for a period of 24 months from the closing date of the Offering.
In addition, the Company has agreed to grant to the Underwriter an option to purchase
up to an additional 15% of the number of Units sold under the Offering at a price per Unit
equal to the Issue Price, on the same terms and conditions as the Offering, exercisable
at any time, in whole or in part, until the date that is 30 days following the closing of the
Offering.
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 offere d by way of a prospectus supplement (the “ Prospectus
Supplement”) to the Company’s existing base shelf prospectus in the 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 sub ject 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 und er 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 lo cated 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 forw ard-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, expect ations, 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 even ts 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.