Eloro Resources Announces Filing of Preliminary Short Form Prospectus
20 Adelaide Street East, Suite 200, Toronto, Ontario CANADA M5C 2T6 Tel.: (416) 868-9168 Fax: (416) 361 -1333
TSX.V Symbol: ELO www.elororesources.com
Eloro Resources Announces Filing of Preliminary Short Form Prospectus
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, Canada – December 16, 2020 – Eloro Resourc es Ltd. (the “Company” or “Eloro”) (TSX-V: ELO;
OTCQX: ELRRF; FSE: P2QM) is pleased to announce tha t, in connection with its previously announced
bought deal financing (see Eloro press releases dat ed December 9, 2020), it has filed a preliminary sh ort
form prospectus with the applicable securities regu lators in each of the provinces of Canada, except
Quebec. Under the terms of the financing, Haywood Securities Inc., as lead underwriter, and Echelon
Wealth Partners Inc. (the “Underwriters”) have agreed to purchase, on a bought deal basis, 3,548,400 units
(the “Units”) at a price of Cdn$1.55 per Unit (the “Issue Price”) for gross proceeds to the Company of
Cdn$5,500,020 (the “Offering”).
Each Unit will consist of one common share (a “Common Share”) of the Company and one-half (1/2) of one
common share purchase warrant (each whole common sh are purchase warrant, a “Warrant”) of the
Company. Each Warrant shall be exercisable to acqu ire one Common Share at a price of Cdn$2.00 for a
period of 24 months from the closing date of the Offering.
In addition, the Company has agreed to grant to the Underwriters 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 a t any time, in whole or in part, until the date tha t is 30
days following the closing of the Offering.
The Company intends to use the majority of the net proceeds from the Offering for continued exploratio n
of the Company’s Iska Iska project in Bolivia, including 10,000 metres of additional diamond drilling planned
to be carried out on the property (6,000 metres of drilling at Santa Barbara/Huayra Kasa and 4,000 metres
of initial drilling at the Central Breccia Pipe). To date, the Company’s drill program at Iska Iska h as
completed more than 4,800 metres of drilling in 19 underground and surface drill holes. Assay results for
the first five drill holes were reported in the Company’s November 18, 2020 press release; assay results for
the balance of the holes are pending.
The Offering is scheduled to close on or about Dece mber 30, 2020 and is subject to certain conditions
including, but not limited to, the receipt of all n ecessary regulatory and other approvals including t he
approval of the TSX Venture Exchange and applicable securities regulatory authorities.
The preliminary short form prospectus is still subject to completion or amendment. A copy of the preliminary
short form prospectus is available electronically a t www.sedar.com. There will not be any sale of or any
acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
The securities offered in the Offering have not bee n, and will not be, registered under the U.S. Secur ities
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 ab sent
registration or any applicable exemption from the r egistration requirements of the U.S. Securities Act and
applicable U.S. state securities laws. This news 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.
2
Qualified Person
Dr. Bill Pearson, P.Geo., Chief Technical Advisor for Eloro and a Qualified Person as such term is defined
in National Instrument 43-101, has reviewed and approved the technical content of this news release.
About Eloro
Eloro is an exploration and mine development compan y with a portfolio of gold and base-metal propertie s
in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective I ska
Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral
deposit type in the Potosi Department, in southern Bolivia. Eloro commissioned a NI 43-101 Technical
Report on Iska Iska, which was completed by Micon International Limited and is available on Eloro’s website
and under its filings on SEDAR. Iska Iska is a roa d-accessible, royalty-free property. Eloro also ow ns 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 an d Pan American Silver’s La Arena Gold Mine. La
Victoria consists of eight mining concessions and e ight mining claims encompassing approximately 89
square kilometres. La Victoria has good infrastruct ure 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 Thoma s G. Larsen, Chairman and CEO, or Jorge
Estepa, Vice-President, at (416) 868-9168.
Information in this news release may contain forwar d-looking information. Statements containing forwar d
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 comple tion of the Offering, the use of proceeds from the
Offering and the Company’s exploration plans at the Iska Iska property). There can be no assurance tha t
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 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.