Eloro Resources closes $25.01-million bought deal
2021-03-26 10:34 ET – News Release
Mr. Thomas Larsen reports
ELORO RESOURCES CLOSES C$25 MILLION BOUGHT DEAL FINANCING
Eloro Resources Ltd. has closed its previously announced bought deal financing, including the exercise in full of the overallotment option, of 6.67 million units of the company at a price of $3.75 per unit for aggregate gross proceeds to the company of $25,012,500. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant of the company. Each warrant is exercisable to acquire one common share at a price per warrant share of $5.25 for a period of 24 months from the closing date of the offering. 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 $7 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 basis, by Haywood Securities Inc. and Cantor Fitzgerald Canada Corp., as co-lead underwriters and joint bookrunners, and Cormark Securities Inc., as co-lead underwriter.
The company intends to use the net proceeds from the offering mainly for the continued exploration and development of the company’s Iska Iska project in Bolivia. On Feb. 16, 2021, Eloro announced the addition of a second drill rig to commence drilling on the Central breccia pipe target. Planned diamond drilling for the balance of 2021 and the first quarter of 2022 totals 51,000 metres, comprising 6,000 metres already budgeted and an additional 45,000 metres planned to be financed from the offering. Additional drills will be added in stages so that by July, 2021, four 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 mineral resource in the Santa Barbara breccia pipe, the Central breccia pipe, the Porco (South) breccia pipe target and the Huayra Kasa breccia pipe/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 property, located 20 kilometres southwest of Iska Iska. Eloro also intends to pay from the proceeds of the offering $2.5-million (U.S.) toward the $10-million (U.S.) option price under an option agreement to acquire a 99-per-cent interest in the Iska Iska project.
In connection with the offering, the underwriters received a cash commission equal to 6 per cent of the gross proceeds of the offering (for a total cash commission of $1,500,750) and that number of non-transferable compensation options equal to 6 per cent of the aggregate number of units sold under the offering (for a total of 400,200 compensation options). Each compensation option is exercisable into one common share at the issue price for a period of 24 months from the closing date of the offering.
Qualified person
Dr. Bill Pearson, PGeo, Eloro’s executive vice-president of exploration, 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 Resources Ltd.
Eloro Resources is an exploration and mine development company with a portfolio of gold and base metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99-per-cent 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 National Instrument 43-101 technical report on Iska Iska, which was completed by Micon International Ltd. and is available on Eloro’s website and under Eloro’s filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82-per-cent interest in the La Victoria gold/silver project, located in the north-central mineral belt of Peru, approximately 50 kilometres 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 electricity, and is located at an altitude that ranges from 3,150 metres to 4,400 metres above sea level.
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