Eloro Resources Ltd.

Eloro Resources Ltd.

December 07, 2007 11:42 ET

Eloro Completes $3,000,000 Financing With MineralFields Group

TORONTO, ONTARIO--(Marketwire - Dec. 7, 2007) -


Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce that it has completed its previously announced non-brokered private placement (the "Private Placement") with the MineralFields Group of 5,000,000 Flow-Through Units (the "Units") issued on a "flow-through" basis under the Income Tax Act (Canada) at a price of 60 cents per Unit, for gross proceeds to the Company of $3,000,000. This represents the fifth "flow-through" private placement financing that Eloro is completing with MineralFields Group, having now completed five placements since December 2005 at price levels ranging from $0.17 to $0.80 for aggregate proceeds to Eloro totaling $5,750,000.

Each Unit consists of one common share (the "Common Shares") issued on a "flow-through" basis under the Income Tax Act (Canada) and one half of one common share purchase warrant of the Company (the "Unit Warrants"). Each Unit Warrant has a term of 24 months (the "Term") and will entitle the holder to purchase one Common Share at a price of $0.90 per share in the first year of the Term and $1.10 in the second year of the Term. Pursuant to the Private Placement, if the average closing price of the Common Shares is over $1.10 for a period of 20 consecutive trading days (following the expiry of the hold period) in the first year of the Term, or $1.30 in the second year of the Term, the Unit Warrants must be exercised within ten business days of receiving written notice from Eloro or they are to be terminated.

In connection with the Private Placement, the Company paid a finder's fee of $120,000 to Limited Market Dealer Inc. ("LMD"), an arm's length party, equal to 4% of the completed Private Placement, and issued 50,000 common shares of the Company at a deemed value of $0.60 per share or $30,000 in aggregate, equal to 1% of the completed Private Placement. Further, the Company issued 500,000 finder's fee share purchase warrants to LMD, entitling LMD to purchase 500,000 common shares of the Company on the same terms as the Unit Warrants.

The net proceeds of the Private Placement will be used to finance continued exploration programs at Eloro's projects located in the James Bay District of northern Quebec and the Hurdman Silver-Zinc-Gold Property in Ontario. 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.

"We are very pleased to be completing yet another financing with MineralFields Group", said Thomas Larsen, Eloro's President and CEO. "This is an important milestone in the growth of Eloro and we look forward to working with MineralFields Group as we develop our holdings both in the James Bay district of Quebec and in northern Ontario."

About MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com First Canadian Securities® is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.

About Eloro Resources Ltd.

Eloro is a junior exploration company focused on discovering and developing precious and base metal quality resources in James Bay and uranium resources in the Otish Basin districts of northern Quebec, as well as base and precious metals in the Timmins Camp of northern Ontario. Eloro currently has eleven gold-copper-silver properties (807 claims) covering 410 km2 in the La Grande and Eastmain Archean Greenstone Belts, proximal to Goldcorp's Eleonore gold deposit. Eloro also has an option to earn a 50% interest in 31 claims held by Virginia Mines Inc. Additionally; Eloro now owns 110 km2 of prospective uranium holdings in 10 properties (217 claims). The Timmins area holdings now include both the prospective Zinc-Silver-Gold Hurdman Property, and the 30 km2 McArthur Lake Nickel Property.

For all Eloro investor relations needs, investors are asked to visit the Eloro Resources IR Hub at http://www.agoracom.com/ir/eloro where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to elo@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

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
    Eloro Resources Ltd.
    Jorge Estepa
    (416) 868-9168
    (416) 361-1333 (FAX)
    Website: www.elororesources.com