Eloro Resources Closes C$25 Million Bought Deal Financing
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 Closes C$25 Million Bought Deal Financing
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OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Toronto, Ontario – March 26, 2021 – Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO;
OTCQX: ELRRF; FSE: P2QM) is pleased to announce that it has closed its previously announced bought
deal financing, including the exercise in full of the over-allotment option, of 6,670,000 units of the Company
(“Units”) at a price of C$3.75 per Unit (the “Issue Price”) for aggregate gross proceeds to the Compan y of
C$25,012,500 (the “Offering”). Each Unit consists of one common share (a “Common Share”) in the capital
of the Company and one-half (1/2) of one common sha re purchase warrant (each whole common share
purchase warrant, a “Warrant”) of the Company. Eac h Warrant is 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, provided that, the expiry date of the Warrants may be accelerated by the Company at
any time following the six-month anniversary of the closing date of the Offering and prior to the expiry date
of the Warrants if the volume-weighted average trading price of the Company’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, whereupon the Warrants will expire
on the 20th calendar day after the date of such press release.
The Offering was underwritten on a bought deal basi s by 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”).
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. On February 16, 2021, Eloro announced the
addition of a second drill rig to commence drilling on the Central Breccia Pipe target. Planned diamo nd
drilling for the balance of 2021 and Q1 2022 is 51, 000 metres, comprising 6,000 metres already budgete d
and an additional 45,000 metres planned to be funde d from the Offering. Additional drills will be add ed in
stages so that by July 2021, 4 surface drill rigs a re expected to be operating with an expected produc tion
of 6,000 metres per month. This drilling will be done to explore and define a mineral resource in the Santa
Barbara Breccia Pipe, Central Breccia Pipe, Porco ( South) Breccia Pipe target and the Huayra Kasa
Breccia Pipe and underground workings. Included as part of the 45,000 metres are 6,000 metres of drilling
in outside targets at Iska Iska and the Pache prope rty located 20 kilometres southwest of Iska Iska. Eloro
also intends to pay from the 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.
In connection with the Offering, the Underwriters r eceived a cash commission equal to 6% of the gross
proceeds of the Offering (for a total cash commission of C$1,500,750) and that number of non-transferable
compensation options (the “Compensation Options”) e qual to 6% of the aggregate number of Units sold
under the Offering (for a total of 400,200 Compensa tion Options). Each Compensation Option is
exercisable into one Common Share at the Issue Pric e for a period of 24 months from the closing date o f
the Offering.
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
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registration or any applicable exemption from the r egistration 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.
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 use of proceeds from the Offering and the Company’s
exploration plans at the Iska Iska property). Ther e can be no assurance that forward-looking statemen ts
will prove to be accurate. Actual results and futu re events could differ materially from those antici pated 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.