ELORO COMPLETES $700,000 FLOW-THROUGH FINANCING
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Toronto, Canada: December 31, 2009 – Eloro Resources Ltd. (ELO: TSX Venture Exchange) (the “Company” or “Eloro”) announces the completion of its previously announced non-brokered private placement (the “Private Placement”) (see Eloro’s news releases dated December 1, 2009 and December 18, 2009), subject to final TSX Venture Exchange acceptance. Eloro issued 5,833,333 Flow-Through Units (“F-T Units”) at a price of $0.12 per F-T Unit for total proceeds of $700,000.
Each F-T Unit consists of one common share (“Common Shares”) issued on a “flow-through” basis under the Income Tax Act (Canada) and one half of one common share purchase warrant (“F-T Unit Warrants”). Each whole F-T Unit Warrant entitles the holder to purchase one non-flow-through common share at any time within eighteen (18) months after the F-T Unit Warrant issue date, at a price of $0.18. One director and one officer of the Company subscribed for 70,000 F-T Units in aggregate for proceeds of $8,400. All securities issued pursuant to the Private Placement are subject to a four month hold period.
In connection with the Private Placement, the Company paid finder’s fees of $30,404 to arm’s length parties. The Company also issued 17,000 finder’s fee unit share purchase warrants to an arm’s length party, entitling the holder to purchase 17,000 non-flow-through units on the same terms as the F-T Units. Further, the Company also issued 238,433 finder’s fee share purchase warrants to arm’s length parties, entitling the holders to purchase 238,433 Common Shares at a price of $0.18 per share within eighteen months after the issue date.
The gross proceeds from the Private Placement will be used to fund exploration expenses which qualify as “Canadian Exploration Expenses” (within the meaning of the Income Tax Act (Canada)) at the Simkar Gold project located 20km east of Val d’Or, Quebec. The Simkar gold property is wholly-owned by Megastar Development Corporation and Eloro has an option to earn a 50% interest in the advanced gold project.
About Eloro Resources Ltd.
Eloro is a junior exploration company focused on discovering and developing precious and base metal quality resources in the James Bay region of northern Quebec, and base and precious metals in both the Timmins and Val-d’Or mining camps of northern Ontario and Quebec.
James Bay, Quebec
Eloro currently has eleven gold-copper-silver properties (1,062 claims) covering 548 km2 in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp’s Eleonore Gold Project. Eloro also has an option to earn a 50% interest in 31 claims held by Virginia Mines Inc., also located in James Bay, Quebec.
Val-d’Or, Quebec
Eloro recently signed an option agreement with Megastar Development Corporation to earn a 50% interest in the advanced Simkar Gold property located 20km east of Val-d’Or Quebec.
Timmins, Ontario
The Timmins area holdings include both the prospective Hurdman Zinc Silver Property, and the 30 km2 McArthur Lake Nickel Property under option to Fletcher Nickel Inc.
For further information please contact: Thomas G. Larsen, President and CEO or Jorge Estepa, Vice-President at (416) 868-9168.
Statements in this release that are not historical facts are “forward-looking statements” and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these “forward-looking” statements. The IIROC and the TSX Venture Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of this release. (Not for dissemination in the United States). |
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| Eloro Resources Ltd. 5 Jan 2010 - 18:52 |
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