Eloro Resources Ltd.
NEX BOARD : ELO.H

Eloro Resources Ltd.

September 30, 2005 10:10 ET

Eloro Completes Financing

TORONTO, ONTARIO--(CCNMatthews - Sept. 30, 2005) -

Not for dissemination in the United States of America.

Eloro Resources Ltd. (NEX:ELO.H) (the "Company" or "Eloro") is pleased to announce that it has completed its previously announced brokered private placement (the "Private Placement") through Northern Securities Inc. ("Northern") of 888,665 flow-through units (" FT Units") of the Company at a price of $0.15 per FT Unit for gross proceeds of $133,299.75 and 3,473,898 non-flow through units ("Units") of the Company at a price of $0.12 per Unit for gross proceeds of $416,867.76. Each FT Unit consists of one common share 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 "Warrants") Each whole Warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.18 at any time on or before two years from the closing date of the Private Placement. Each Unit consists of one common share of the Company and one-half of one Warrant of the Company. In aggregate the total gross proceeds of the Private Placement amount to $550,167.51. The common shares and the Warrants to be issued pursuant to the Private Placement will be subject to a hold period which expires January 30, 2006.

Northern received for its services in connection with the Private Placement a fee of $55,016.75 and broker warrants entitling Northern to purchase an aggregate of 436,256 Units at a price of $0.12 per Unit at any time on or before September 29, 2007.

The net proceeds from the Private Placement will be used by the Company towards the purchase of exploration properties located in the province of Quebec, as detailed in the Company's press releases dated June 21, June 28 and July 8, 2005, to finance exploration on its newly acquired Quebec properties and its Ontario based properties, namely the Hurdman project, and for general working capital.

The completion of the Private Placement is subject to the receipt of all necessary regulatory and exchange approval, including that of the NEX and TSX Venture Exchange Inc.

The NEX and TSX Venture Exchange Inc. have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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