Eloro Resources Ltd.

Eloro Resources Ltd.

July 18, 2007 15:58 ET

Eloro Announces $750,000 Financing

TORONTO, ONTARIO--(Marketwire - July 18, 2007) - Eloro Resources Ltd. (TSX VENTURE:ELO)(the "Company" or "Eloro") is pleased to announce that it intends to complete a non-brokered private placement (the "Private Placement") of up to 1,153,846 Flow-Through Units of Eloro at a price of $0.65 per unit to be issued on a "flow-through" basis under the Income Tax Act (Canada) for total proceeds of up to $750,000.

Each Flow-Through Unit will consist of one common share (the "Common Shares") to be 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 "FT Unit Warrants"). Each FT Unit Warrant will have a term of 18 months and will entitle the holder to purchase one Common Share at a price of $0.95 per share. Pursuant to the Private Placement, if the average closing price of the Common Shares is over $1.15 for a period of 20 consecutive trading days (following the expiry of the hold period), the FT Unit Warrants must be exercised within ten business days of receiving written notice from Eloro or they are to be terminated.

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. 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

Eloro is a junior exploration company focused on discovering and developing precious and base metal quality resources in the James Bay and Otish Basin districts of northern Quebec, and 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 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 90 km2 of prospective uranium holdings in 10 properties (175 claims). The Timmins area holdings now include both the prospective Silver-Zinc-Gold Hurdman Property, and the 30 km2 McArthur Lake Nickel Property.

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