Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

December 23, 2008 17:28 ET

Eloro Completes $500,000 Financing With the MineralFields Group

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2008) -

(NOT FOR DISSEMINATION IN THE UNITED STATES).

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") of 5,000,000 Units of Eloro at a price of $0.10 per unit ("Units") for total proceeds of $500,000 with the MineralFields Group.

Each Unit consists of one common share issued on a "flow-through" basis under the Income Tax Act (Canada) and one half of one non-flow-through common share purchase warrant of the Company (the "Unit Warrants"). Each Unit Warrant has a term of 24 months and will entitle the holder to purchase one common share of the Company at a price of $0.15 per share.

In connection with the Private Placement, the Company paid a finder's fee of $25,000 to Limited Market Dealer Inc. ("LMD"), an arm's length party, equal to 5% of the gross proceeds of the Private Placement, a due diligence fee of $20,000 plus GST to LMD, equal to 4% of the gross proceeds of the Private Placement, and issued 500,000 finder's fee share purchase warrants to LMD entitling LMD to purchase 500,000 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 projects located in Quebec and the Hurdman Silver-Zinc-Gold Property in Ontario. The Private Placement is subject to final approval by the TSX Venture Exchange. All securities issued pursuant to the Private Placement are subject to a four month hold period.

"We are pleased with the relationship and continued support we have received from the MineralFields Group", said Thomas Larsen, Eloro's President and C.E.O. "We look forward to continuing to work with the MineralFields Group as we advance our property holdings."

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

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 and uranium resources in the Otish Basin districts 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 Prospect. Eloro also has an option to earn a 50% interest in 31 claims held by Virginia Mines Inc. Eloro also owns 90 km2 of prospective uranium holdings in 10 properties (175 claims). The Timmins area holdings include both the prospective Hurdman Zinc-Silver-Gold Property, and the 30 km2 McArthur Lake Nickel Property. Eloro also acquired 4 oil and gas permits, the Charlevoix Property, located in the Charlevoix area along on the northern shore of the St. Lawrence River, 75 km NE of Quebec City, Quebec. The Charlevoix Property encompasses 534 km2 along a segment of the same Paleozoic Basin that hosts the current Quebec "gas play" in the Utica Shale.

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