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
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OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Toronto, Canada – March 8, 2021 – Eloro Resources L td. (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 March 2, 2021 and March 3, 2021), it has filed a
preliminary short form prospectus with the applicab le securities regulators in each of the provinces o f
Canada, except Quebec. Under the terms of the financing, Haywood Securities Inc. and Cantor Fitzgerald
Canada Corporation as co-lead underwriters and joint-bookrunners, and Cormark Securities Inc. as co-lead
underwriter (collectively, the “Underwriters”) have agreed to purchase, on a bought deal basis, 5,800, 000
units (the “Units”) at a price of C$3.75 per Unit ( the “Issue Price”) for gross proceeds to the Compan y of
C$21,750,000 (the “Offering”).
Each Unit will consist of one common share (a “Comm on Share”) in the capital of the Company and one-
half (1/2) of one common share purchase warrant (ea ch whole common share purchase warrant, a
“Warrant”) of the Company. Each Warrant shall be exercisable to acquire one Common Share (a “Warrant
Share”) at a price per Warrant Share of C$5.25 for a period of 24 months from the closing date of the
Offering. The expiry date of the Warrants may be a ccelerated by the Company at any time following the
six-month anniversary of the closing date of the Of fering and prior to the expiry date of the Warrants if the
volume-weighted average trading price of the Compan y’s Common Shares is greater than C$7.00 for any
20 consecutive trading days, at which time the Company may accelerate the expiry date by issuing a press
release to announce the reduced warrant term, where upon the Warrants will expire on the 20th calendar
day after the date of such press release.
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 net proceeds from th e Offering mainly for continued exploration and
development of the Company’s Iska Iska project in B olivia. To March 3, 2021, a total of 7,539 metres of
diamond drilling has been completed in 12 undergrou nd holes from the Huayra Kasa workings and 11
surface holes at Iska Iska. On February 16, 2021, Eloro announced the addition of a second drill rig to
commence drilling on the Central Breccia Pipe targe t. Planned diamond drilling for the balance of 202 1
and Q1 2022 is 51,000 metres, comprising 6,000 metres already budgeted and an additional 45,000 metres
planned to be funded from the Offering. Additional drills will be added in stages so that by July 202 1, 4
surface drill rigs are expected to be operating with an expected production of 6,000 metres per month. This
drilling will be done to explore and define a miner al resource in the Santa Barbara Breccia Pipe, Cent ral
Breccia Pipe, South Porco Breccia Pipe target and t he Huayra Kasa Breccia Pipe and underground
workings. Included as part of the 45,000 metres ar e 6,000 metres of drilling in outside targets at Is ka Iska
and the Pache property located 20 kilometres southw est of Iska Iska. Eloro also intends to pay from t he
proceeds of the Offering US$2,500,000 toward the US$10,000,000 option price under an option agreement
to acquire a 99% interest in the Iska Iska Project.
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The Offering is scheduled to close on or about March 26, 2021 and is subject to certain conditions including,
but not limited to, the receipt of all necessary re gulatory and other approvals including the approval of the
TSX Venture Exchange and the 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.
Qualified Person
Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration and a Qualified Person as such term
is defined in National Instrument 43-101, has revie wed 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 t o 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. 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 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 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 forward-looking information. Statements containing forwa rd-
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 th at
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.