Eloro Resources Ltd.

Eloro Resources Ltd.

March 21, 2011 09:04 ET

Eloro Resources Announces Completion of Acquisition of Simkar Gold Property Near Val-d'Or, Quebec

TORONTO, ONTARIO--(Marketwire - March 21, 2011) - Eloro Resources Ltd. (TSX VENTURE:ELO)(FRANKFURT:P2Q) ("Eloro") is pleased to announce that it has completed the acquisition (the "Acquisition") of the Simkar Gold Property near Val-d'Or, Québec (the "Simkar Property") from Megastar Development Corp. ("Megastar") in exchange for 70,000,000 Eloro common shares (the "Eloro Common Shares") issued to Megastar. The acquisition of Megastar's Simkar Property in exchange for the Eloro Common Shares has been effected on a tax-deferred basis pursuant to section 85(1) of the Income Tax Act (Canada), subject to the usual filings with the Canada Revenue Agency.

Prior to the closing of the Acquisition, Eloro had an option to acquire an undivided 50% interest in the Simkar Property from Megastar. However, effective February 28, 2011, title to the Simkar Property was transferred from Megastar to Eloro and Eloro now owns a 100% interest in the Simkar Property. The Eloro Common Shares have been released from escrow and Megastar has distributed them to its shareholders pursuant to a Plan of Arrangement. The Eloro Common Shares that were delivered to Megastar shareholders carried a hold period legend which expired on March 19, 2011.

As previously announced in a press release dated February 9, 2011, Eloro has commenced a two-phase, 10,000 m surface diamond-drilling program at the Simkar Property, a former producing mine located 20 km east of Val-d'Or Quebec. The Simkar Property consists of two contiguous mining concessions (2.26km²) within the prolific Abitibi Greenstone Belt and hosts a thick sequence of east-west trending, near vertical dipping volcanic flows and pyroclastics of the Malartic Group. The higher gold grade, intrusion-centered gold-quartz-tourmaline vein system is geologically similar to the 9 million ounce Sigma-Lamaque Gold Deposit in Val-d'Or and many other gold deposits in the Abitibi Belt.

About Eloro Resources Inc.

Eloro is a junior exploration company focused on discovering and developing precious metals in the Val-d'Or mining camp, as well as quality precious and base metal resources in the James Bay region of northern Quebec. On completion of the Acquisition, Eloro became the owner of a 100% interest in the Simkar Property, a former producing mine located 20 km east of Val-d'Or Quebec.

Information in this news release respecting the Simkar Property, the diamond-drilling program thereat and any potential mineralization located on the property constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the companies' plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the companies. Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Eloro Resources Ltd.
    Thomas G. Larsen
    President and CEO
    (416) 868-9168
    Eloro Resources Ltd.
    Jorge Estepa
    (416) 868-9168