Eloro Resources Ltd.

Eloro Resources Ltd.

August 09, 2006 13:59 ET

Eloro Closes Property Acquisition

TORONTO, ONTARIO--(CCNMatthews - Aug. 9, 2006) - Eloro Resources Ltd. (the "Company" or "Eloro")(TSX VENTURE:ELO) is pleased to announce that it has received final approval from the TSX Venture Exchange in connection with the previously announced acquisition (the "Acquisition") of the Horseshoe Property located in the La Grande Greenstone Belt of northern Quebec. The Horseshoe Property consists of 51 map staked cells totalling approximately 25.5 square kms and is located between Eloro's Lemoyne North and Taiga properties which were recently optioned by Cambior Inc. (refer to Eloro's news release dated June 8, 2006).

Eloro acquired a 100% interest in the Horseshoe Property by: i) paying C$30,000 to Mr. J.S. Lavallee (the "Vendor"), ii) issuing 300,000 common shares of Eloro (the "Shares") to the Vendor, and iii) issuing 150,000 non-transferable share purchase warrants of Eloro (the "Warrants") to the Vendor. Each Warrant will have a term of 24 months and will entitle the holder to purchase one common share of Eloro at a price of C$0.75 per share in the first year of the term and C$1.00 in the second year of the term. The Vendor retains a 1% Net Smelter Returns royalty, of which Eloro can purchase 0.5% for C$500,000. The Shares issued pursuant to the Acquisition are subject to a hold period which expires December 10, 2006.

About Eloro

Eloro is a publicly traded resource exploration and development company based in Toronto, Ontario and Val D'Or, Quebec. Eloro controls 19 strategic and well located properties, of which 12 are gold-copper and 7 are uranium, representing 282 km2 in the highly prospective James Bay District of northern Quebec. The properties include 95 km2 in the Eastmain Greenstone Belt, where Goldcorp Inc. is developing the Eleonore Gold Prospect, and 153 km2 in the La Grande Greenstone Belt, as well as an additional 34 km2 of uranium, gold and copper prospects in the Rupert Greenstone Belt, located south of the Eastmain Belt.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Not for dissemination in the United States of America.

Contact Information

  • Eloro Resources Ltd.
    Thomas G. Larsen
    (416) 868-9168
    Eloro Resources Ltd.
    Jorge Estepa
    Vice President
    (416) 868-9168
    (416) 361-1333 (FAX)