Escondoro Resources Ltd.

Escondoro Resources Ltd.

October 11, 2007 10:38 ET

Escondoro Resources Ltd.: Filing of Preliminary Prospectus

QUEBEC CITY, QUEBEC--(Marketwire - Oct. 11, 2007) - Escondoro Resources Ltd. - ("Escondoro" or the "Corporation") is pleased to announce that it has filed a preliminary prospectus (the "Prospectus") with the securities regulatory authority in each of the provinces of Quebec, Ontario, Alberta and British Columbia (the "Securities regulatory authorities") in connection with an initial public offering of units of Escondoro for a gross proceeds of $4,000,000 (the "Offering"). A receipt was obtained for the Prospectus. The Corporation has appointed Canaccord Capital Corporation to act as agent with respect to the Offering. Closing of the Offering is subject to required Securities regulatory authorities and the TSX Venture Exchange Inc. approvals.

With its registered office located in Quebec City, Escondoro is a mining exploration corporation focused in Ecuador. After the closing of the Offering, the business of the Corporation will pertain to the exploration of its mining properties up to commercial production. Pursuant to an Option and Joint Venture Agreement entered into with Plexmar Resources Inc. (TSX VENTURE:PLE) and its subsidiary, Plexmar Ecuador S.A., last September 14th (the "Option Agreement"), the Corporation's subsidiary, Sadcoecuador S.A., was granted an exclusive option to acquire up to an undivided 60 % interest in 24 exploration concessions (the "Escondida project") in Ecuador.

The Escondida project covers approximately 85,000 hectares (850 km2) and borders Aurelian Resources Inc.'s ("Aurelian") large land package on the western flank and north of Corriente Resources Inc. concessions.

The units of Escondoro have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to or for the account or benefit of any U.S. person.

You are also invited to consult the Prospectus which is available on the SEDAR Website at www.sedar.com. The information contained in the Prospectus is subject to completion or amendment. No commitment may be made in respect of the securities described in the Prospectus until the Securities regulatory authorities have issued their receipt for the final prospectus. A copy of the Prospectus may be obtained by contacting the person named below.

This press release contains forward-looking statements which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The Corporation disclaims any obligation to update these forward-looking statements.

Contact Information

  • For a copy of the Prospectus and any additional information
    Escondoro Resources Ltd.
    Mr. Guy Bedard
    President
    418-651-3854