Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

October 01, 2009 12:00 ET

Eloro Announces $800,000 Financing

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2009) -

(NOT FOR DISSEMINATION IN THE UNITED STATES)

Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce that it is proceeding with a non-brokered private placement (the "Private Placement") of up to 8,000,000 Units of Eloro at a price of $0.10 per unit ("Units") for total proceeds of up to $800,000.

Each Unit will consist of one common share (a "Common Share") and one half of one warrant (a "Warrant") of the Company. Each whole Warrant will entitle the holder to purchase one Common Share of the Company at a price of $0.15 per share for a term of 18 months provided that, if the closing price for the Common Shares is at least $0.20 per share for 20 consecutive trading days (following the expiry of the hold period), the Company may accelerate the expiry date on not less than 30 days' notice.

The net proceeds of the Private Placement will be used for working capital purposes. The Private Placement is subject to approval by the TSX Venture Exchange. All securities issued pursuant to the Private Placement will subject to a four month hold period.

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.

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 TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Eloro Resources Ltd.
    Thomas G. Larsen
    President and CEO
    (416) 868-9168
    or
    Eloro Resources Ltd.
    Jorge Estepa
    Vice-President
    (416) 868-9168
    www.elororesources.com