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TORONTO, March 03, 2021 (GLOBE NEWSWIRE) – Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce that it has changed the terms of its previously announced bought deal financing to increase the size of the Offer at C $ 21.75 million (the “Resized Offer”).
Pursuant to the Expanded Offer, Haywood Securities Inc. and Cantor Fitzgerald Canada Corporation as co-lead and joint bookkeepers, and Cormark Securities Inc. as joint lead (collectively, the “ underwriters ”) have agreed to purchase, on a bought deal basis, 5,800,000 units (the“ Units ”) at a price of Cdn $ 3.75 per Unit (the“ Issue Price ”) for a gross proceeds accruing to the company of CA $ 21,750,000.
Each unit will consist of one common share (an “Common Share”) of the capital of the Company and one-half (1/2) of a common share purchase warrant (each common share purchase warrant whole, a “warrant”) of the company. Each warrant may be exercised 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. increased placement. The expiration date of the warrants may be brought forward by the Company at any time after the six-month anniversary of the closing date of the increased offer and before the expiration date of the warrants if the average price Volume Weighted Common Share of the Company is greater than C $ 7.00 for 20 consecutive trading days, at which time the Company may accelerate the expiration date by issuing a press release announcing the reduced term warrants, after which the warrants will expire on the 20the calendar day following the date of this press release.
In addition, the Company has agreed to grant the underwriters an option to purchase up to an additional 15% of the number of units sold under the increased offer at a price per unit equal to the issue price, under the same terms and conditions as the increased Offer, which can be exercised at any time, in whole or in part, until the date falling 30 days after the closing of the increased Offer.
The net proceeds of the expanded offering will be used for exploration and development of the Company’s projects in Bolivia and Peru, as well as for general working capital and corporate needs.
The units will be offered by means of a simplified prospectus which will be filed in all provinces of Canada, except Quebec. The Units will also be sold to US buyers by way of a private placement in accordance with an exemption from the registration requirements of Rule 144A of the United States Securities Act of 1933, as amended, and other jurisdictions. outside of Canada, provided that no prospectus filing or obligation arises.
The oversized offering is expected to close on or about March 26, 2021 and is subject to certain conditions, including, but not limited to, receipt of all necessary regulatory and other approvals, including the approval of the Exchange. TSX Venture and securities regulatory authorities.
Under the Extended Offer, the Underwriters will receive a cash commission of 6.0% of the gross proceeds of the Extended Offer and such number of non-transferable compensation options (the “Compensation Options”) corresponding to 6.0% of the total number of units sold under the premium offering. Each compensation option may be exercised against one ordinary share at the issue price for a period of 24 months from the closing date of the increased placement.
The securities offered under the Resized Offer have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) or any applicable securities law. ‘a United States state, and may not be offered or sold in the United States or to, or on behalf of or for the benefit of, persons of the United States absent registration or any applicable exemption from the requirements of ‘registration of the US Securities Act and applicable US securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, nor any sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be illegal.
Eloro is a mining exploration and development company with a portfolio of gold and base metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% stake in the highly promising Iska Iska property, which can be classified as a polymetallic epithermal-porphyry complex, a type of significant mineral deposit in the department of Potosi, in southern Bolivia. Eloro has commissioned an NI 43-101 technical report on Iska Iska, which has been completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a property accessible by road and free of rights. Eloro also owns an 82% interest in the La Victoria gold / silver project, located in Peru’s north-central mineral belt approximately 50 km south of Barrick’s Lagunas Norte gold mine and gold mine. The Pan American Silver Arena. Victoria consists of eight mining concessions and eight mining claims covering approximately 89 square kilometers. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude ranging from 3,150 m to 4,400 m above sea level.
For more information, please contact Thomas G. Larsen, Chairman and CEO, or Jorge Estepa, Vice President at (416) 868-9168.
The information contained in this press release may contain forward-looking information. Statements containing forward-looking information express, as of the date of this press release, the Company’s plans, estimates, forecasts, projections, expectations or beliefs regarding future events or results and are considered reasonable based on the information. currently available to the Company. . There can be no assurance that forward-looking statements will prove to be correct. Actual results and future events could differ materially from those anticipated in these statements. Readers should not place undue reliance on forward-looking information.
Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of TSXV) accepts responsibility for the adequacy or accuracy of this release.