Eloro Resources Ltd.

Eloro Resources Ltd.

September 01, 2010 16:49 ET

Eloro Resources Reschedules Shareholder Meeting

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2010) - Eloro Resources Ltd. (TSX VENTURE:ELO)(FRANKFURT:P2Q) ("Eloro" or the "Company") announces that its Annual and Special Meeting of Shareholders originally scheduled for September 30, 2010 will be rescheduled to a later date, likely before the end of October. Since Eloro may have to call a Special Meeting of shareholders at which shareholders will be asked to approve the recently announced proposed business combination between it and Megastar Development Corp. (TSX VENTURE:MDV)(FRANKFURT:M5Q), Eloro has decided that it would be in the best interests of its shareholders to hold one meeting at which both routine annual business and the proposed business combination would be considered by shareholders. 

On August 30, 2010, Eloro and Megastar jointly announced that they had reached an agreement in principle to enter into a business combination to consolidate 100% ownership of the Simkar project in Eloro by Eloro issuing 70,000,000 Eloro shares to the shareholders of Megastar. Completion of the transaction is subject to usual terms and conditions for such a transaction, including completion and execution of a definitive agreement, receipt of all required regulatory and security holder approvals and no material adverse changes occurring in the financial condition of either company. Depending on the structure of the proposed business combination which is finally decided upon, it may or may not be necessary for Eloro to obtain approval of its shareholders. 

The date for the rescheduled Annual and Special Meeting of shareholders has not yet been definitively determined, but is anticipated to be before the end of October. 

Eloro and Megastar are in the second year of an Option and Joint Venture Agreement that provides Eloro with the option to earn a 50% interest in Simkar by completing $4 million in exploration work, paying Megastar $350,000 and issuing 4.5 million shares of Eloro to Megastar over 3 years. Eloro has met its Year 1 commitments, including incurring exploration costs of minimally C$750,000 pursuant to the Option Agreement with Megastar.

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. In the James Bay region, Eloro has 11 gold-copper-silver properties (1,062 claims) covering 548 km2 in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Project.

Statements made in this news 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.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

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