Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

April 20, 2009 14:59 ET

Eloro Announces Sale of 10 Mining Claims in the Timmins Area in Northeastern Ontario

TORONTO, ONTARIO--(Marketwire - April 20, 2009) - Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce it has entered into an agreement (the "Agreement") with Nebu Resources Inc. (TSX VENTURE:NBU)("Nebu") pursuant to which the Company agreed to sell up to a 90% interest in ten mining claims (collectively the "Properties") located in the Timmins area in northeastern Ontario.

The Properties consist of 10 mining claims in three separate claim groups comprising 59 claim units. The Properties are currently subject to a 1% net smelter returns royalty pursuant to an agreement dated November 20, 2004 between the Company and Don McHoldings Ltd. and 2060014 Ontario Inc.

Pursuant to the Agreement, Nebu has agreed to acquire up to a 90% interest in the Properties by issuing 300,000 common shares of Nebu to the Company and by also completing $200,000 in exploration work on the Properties by March 31, 2011, of which $100,000 must be spent prior to March 31, 2010. In order to earn its initial 50% interest in the Properties, Nebu must issue 150,000 common shares of Nebu to the Company and incur $100,000 in work expenditures prior to March 31, 2010. Once Nebu has earned its proportionate interest in the Properties, the two companies will form a joint venture to further develop the Properties, or if Nebu has earned a 90% interest in the Properties the Company may elect to revert to a 1% net smelter returns royalty. This transaction is subject to regulatory approval.

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 the Timmins Camp of northern Ontario. 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. The Timmins area holdings include both the prospective Hurdman Property, and the 30 km2 McArthur Lake Nickel Property under option to Fletcher Nickel Inc.

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 news 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