Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

December 07, 2006 10:00 ET

Eloro Completes $1,000,000 Financing With Mineralfields Group

TORONTO, ONTARIO--(CCNMatthews - Dec. 7, 2006) -

Not for dissemination in the United States of America

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") with MineralFields Group of 1,538,460 Flow-Through Units (the "Flow-Through Units") at a price of 65 cents per Unit, for gross proceeds to the Company of $1,000,000.

Each Flow-Through Unit consists of one common share (the "Common Shares") issued on a "flow-through" basis under the Income Tax Act (Canada) and one share purchase warrant of the Company (the "Unit Warrants"). Each Unit Warrant will have a term of 24 months (the "Term") and will entitle the holder to purchase one Common Share at a price of $0.95 per share in the first year of the Term and $1.20 in the second year of the Term. 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) in the first year of the Term, or $1.40 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. All securities issued pursuant to this Private Placement are subject to a hold period which expires April 6, 2007.

In connection with the Private Placement, the Company paid a finder's fee to Limited Market Dealer Inc. ("LMD"), an arm's length party, equal to 5% of the completed Private Placement, and further, the Company issued 153,846 finder's fee share purchase warrants to LMD, entitling LMD to purchase 153,846 common shares of the Company on the same terms as the Unit Warrants.

The net proceeds of the Private Placement will be used to finance continued exploration programs at Eloro's exploration projects located in the James Bay District of northern Quebec, and the Company's Hurdman Zinc Silver Gold Property, located in northeastern Ontario. The Private Placement is subject to final approval by the TSX Venture Exchange.

About Eloro

Eloro Resources Ltd. is a junior exploration company focused on discovering and developing precious and base metal quality resources in the James Bay District of northern Quebec and the Timmins Camp of northern Ontario. Eloro currently has 19 gold-copper-silver and uranium properties covering 425 square kilometers in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Prospect. Eloro has recently signed a Letter of Agreement with Virginia Mines Inc. ("Virginia"), allowing Eloro to acquire a 50% interest in three Virginia mineral properties consisting of 31 claims in the James Bay Mining District (refer to Eloro's press release dated November 23, 2006). In June 2006 Eloro signed a Letter of Agreement with IAMGOLD Corporation (formerly Cambior Inc.) allowing IAMGOLD/Cambior to earn a 50% interest in the Lemoyne North, Sakami East and Taiga claim blocks, by spending C$ 2 million in exploration work on or before June 30, 2010 (refer to Eloro's press release dated June 8, 2006).

About MineralFields

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com.

The TSX Venture Exchange Inc. 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
    (416) 868-9168
    (416) 361-1333 (FAX)
    Website: www.mineralfields.com