Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

December 16, 2009 17:55 ET

Eloro Completes $1,000,000 Financing

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") announces the completion of its previously announced non-brokered private placement (the "Private Placement"), subject to final TSX Venture Exchange acceptance. Eloro issued 10,000,000 units ("Units") at a price of $0.10 per Unit for total proceeds of $1,000,000. Each Unit consists of one common share (a "Common Share") and one half of one share purchase warrant (a "Unit Warrant") of the Company. Each whole Unit Warrant has a term of 18 months and entitles the holder to purchase one Common Share at a price of $0.15 per share at any time on or before June 16, 2011. Three directors and one officer of the Company subscribed for 4,600,000 Units in aggregate for proceeds of $460,000. All securities issued pursuant to the Private Placement are subject to the applicable statutory, exchange and regulatory hold period expiring April 17, 2010. The net proceeds of the Private Placement will be used for working capital purposes.

In connection with the Private Placement, the Company paid finder's fees of $5,600 to an arm's length party. The Company also paid finder's fees of $700 to Global Securities Corporation, finder's fees of $4,000 to Integral Wealth Securities Limited ("Integral") as well as the issuance of 50,000 finder's fee unit share purchase warrants to Integral, entitling Integral to purchase 50,000 Units on the same terms as the Private Placement Units. Further, the Company also paid finder's fees of $5,740 to P I Financial Corp. ("P I Financial") and issued 57,400 finder's fee share purchase warrants to P I Financial, entitling P I Financial to purchase 57,400 Common Shares at a price of $0.15 per share at any time on or before June 16, 2011.

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