Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

December 31, 2007 17:28 ET

Eloro Completes $434,709 Financing

TORONTO, ONTARIO--(Marketwire - Dec. 31, 2007) -

(NOT FOR DISSEMINATION IN THE UNITED STATES).

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") of 70,563 common share units (the "Units") at a price of $0.55 per Unit as well as 659,833 Flow-Through Units (the "F-T Units") at a price of $0.60 per F-T Unit for total gross proceeds of $434,709. The securities issued pursuant to the Private Placement are subject to a hold period which expires May 1, 2008.

Each F-T 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 (the "F-T Unit Warrants"). Each F-T Unit Warrant has a term of 24 months (the "Term") and entitles 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 F-T Unit Warrants must be exercised within ten business days of receiving written notice from Eloro or they are to be terminated.

Each Unit consists of one Common Share and one half of one common share purchase warrant (the "Unit Warrant"). Each Unit Warrant has a term of 24 months and entitles the holder to purchase one Common Share at a price of $0.80 per share in the first year of the Term and $1.00 in the second year of the Term. Pursuant to the Private Placement, if the average closing price of the Common Shares is over $1.00 for a period of 20 consecutive trading days (following the expiry of the hold period) in the first year of the Term, or $1.20 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 $30,430 to Integral Wealth Securities Limited ("Integral"), an arm's length party, equal to 7% of the completed Private Placement. Further, the Company issued 73,039 finder's fee share purchase warrants to Integral, entitling Integral to purchase 73,039 common shares of the Company on the same terms as the Unit Warrants.

The net proceeds of the Private Placement will be used for working capital and 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.

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
    or
    Eloro Resources Ltd.
    Jorge Estepa
    Vice-President
    (416) 868-9168
    Website: www.elororesources.com