Eloro Resources Announces Upsized Bought Deal Financing To C$8.5 Million
Eloro Resources Announces Upsized Bought Deal Financing
To C$8.5 Million
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 13, 2022 – Eloro Resources Ltd. (the “ Company” or “Eloro”) (TSX-V:
ELO; OTCQX: ELRRF; FSE: P2QM) is pleas ed to announce that in connection with its
previously announced bought deal financing, the Company and Cormark Securities Inc.,
(the “Underwriter”) have agreed to increase the si ze of the previously announced
financing. The Underwriter has agreed to purchase, on a bought deal basis, 2,615,400
units of the Company (the "Units") at a price of C$3.25 per Unit for gross proceeds to the
Company of approximately C$8.5 million (the " Offering"). Each Unit will consist of one
common share in the capital of the Company (each a “Common Share”) and one-half of
one common share purchase warrant (each whole warrant, a “Warrant”) of the Company.
Each Warrant shall entitle 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 Company has agreed to grant the Underwriter an option (the " Over-Allotment
Option") to sell an additional 392,310 Units, such option being exercisable in whole or in
part at any time prior to the date that is 30 days after the closing of the Offering, to cover
over-allotments, if any, and for market stabilization purposes. In the event that the Over-
Allotment Option is exercised in full, the aggregate gross proceeds of the Offering to the
Company will be approximately C$9.775 million.
The net proceeds from the Offering will be us ed 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 offered by way of a prospectus supplement (the “ Prospectus
Supplement”) to the Company’s existing base shelf prospectus in 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 subject 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.
LEGAL*50467566.1
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 Queb ec. Eloro has an option to acquire a 99%
interest in the highly prospective Iska Is ka 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 Te chnical Report on Iska Iska, which was
completed by Micon Internati onal Limited, is available on Eloro’s website and under its
filings on SEDAR. Iska Iska is a road-accessible, royalty-fr ee 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 el ectricity 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 cont ain forward-looking in formation. 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, expectations, 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 events could di ffer 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.