Eloro Resources Closes CUSD25 Million Bought Deal Financing

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pta20210326033
Corporate announcement for the capital market

Toronto (pta033 / 03/26/2021 / 16:51) – March 26, 2021 – Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce that it has received its previously announced bought deal funding, including the full exercise of the over-allotment option, from Company (the “Offer”) has entered into 6,670,000 units of the Company (“Units”) at a price of CAD 3.75 per unit (the “Issue Price”) for total gross proceeds of CAD 25,012,500 for the Company (the “Offer”). Each Unit consists of one common share (a “Common Share”) in the capital of the Company and one-half (1/2) warrant to acquire one common share (any whole warrant to acquire one common share, a “Warrant”) of the Company. Each warrant is exercisable for a period of 24 months from the closing date of the offer to purchase one common share (a “Warrant Share”) at a price of CAD 5.25 per Warrant Share. The company may expedite the expiration date of the warrants at any time after the six-month anniversary of the closing date of the offering and before the expiration date of the warrants if the volume-weighted average trading price of the company’s common shares is above CAD 7.00 for 20 consecutive trading days; at that time, the Company may advance the expiration date by issuing a press release announcing the reduced term of the warrants, which will expire on the 20th calendar day after the date of this press release.

The Offer was signed on a bought deal basis by Haywood Securities Inc. and Cantor Fitzgerald Canada Corporation as co-lead underwriters and joint bookrunners, and by Cormark Securities Inc. as co-lead underwriters (collectively the “Underwriters”).

The Company intends to use the net proceeds of the financing primarily for further exploration and development of the Company’s Iska Iska Project in Bolivia. On February 16, 2021, Eloro announced the addition of a second drill rig to begin drilling the Central Breccia Pipe. Planned diamond drilling for the remainder of 2021 and the first quarter of 2022 is 51,000 meters, consisting of 6,000 meters that has already been budgeted and an additional 45,000 meters to be funded from the financing. Additional drilling rigs will be added gradually so that 4 surface drilling rigs are expected to be operational by July 2021 with an expected production of 6,000 meters per month. These holes are being drilled to explore and define a mineral resource in the Santa Barbara Brecciated Tube, Central Brecciated Tube, Porco (South) Brecciated Tube, and Huayra Kasa Brecciated Tube and underground operations. As part of the 45,000 meters, 6,000 meters of drilling is included in external targets at Iska Iska and the Pache property located 20 kilometers southwest of Iska Iska. It is also intended to use the proceeds of the financing in the amount of USD 2.5 million for a partial repayment of the purchase price of USD 10.0 million, which is part of an option agreement to acquire a 99% stake in the Iska project Iska had been agreed.

In connection with the Offer, the Underwriting Banks received a cash commission of 6% of the gross proceeds of the Offer (a total of 1,500,750 cash commission and a number of non-transferable compensation options (the “Compensation Options”) that represent 6% of the total number of under Units sold under the Offering (total of 400,200 Compensation Options) Each compensation option can be exercised in one common share at the issue price within a period of 24 months from the closing date of the Offering.

The securities offered in the offering have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) or the securities laws of the US states and may not be registered in the United States or on US Offered or sold to or for the account of or for the benefit of US persons, unless they are registered or exempt from the registration requirements of the US Securities Act and the applicable securities laws of the US states. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, nor will any sale of such securities be made in any jurisdiction in which such offer, solicitation or sale would be unlawful .

Qualified person

The geologist Dr. Bill Pearson, Eloro Resources Executive Vice President Exploration and a Qualified Person as defined in National Instrument 43-101, has reviewed and approved the technical content of this news release.

About Eloro Resources

Eloro is an exploration and mine development company with a portfolio of gold and base metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly promising Iska Iska property, which can be classified as a polymetallic epithermal-porphyry complex, a major type of mineral deposit located in the Potosí Department of southern Bolivia. Eloro has commissioned a NI 43-101 technical report on Iska Iska, completed by Micon International Limited and available on the Eloro website and under filings on SEDAR. Iska Iska is a street-accessible, license-free property. In addition, Eloro owns an 82% interest in the La Victoria gold / silver project, located in the north-central mineral belt of Peru, approximately 50 km south of Barrick’s Lagunas Norte gold mine and Pan American Silver’s La Arena gold mine. La Victoria consists of eight mining concessions and eight mining claims covering an area of ​​approximately 89 square kilometers. La Victoria has a good infrastructure with access to roads, water and electricity and is located at an altitude between 3,150 m and 4,400 m above sea level.

For more information, please contact either:

Thomas G. Larsen (President and CEO)

[email protected]

Jorge Estepa (Vice-President)

[email protected]

Tel +1 (416) 868-9168

Fax +1 (416) 361-1333

www.elororesources.com

ELORO RESOURCES LTD

20 Adelaide Street East, Suite 200

M5C 2T6 Toronto (Ontario)

Canada

Caution with forward-looking information

The information in this press release may contain forward-looking information or statements that contain forward-looking information. As of the date of this press release, they express the company’s plans, estimates, forecasts, predictions, projections, expectations or beliefs about future events or results and are believed to be reasonable based on the information currently available to the company. There can be no assurance that forward-looking statements will prove to be correct. 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 news release.

(End)

Emitter: Eloro Resources Ltd.
20 Adelaide Street East
M5C 2T6 Toronto Toronto
Canada
Contact Person: Jorge Estepa
Tel.: +1 (416) 868-9168
E-mail: [email protected]
Website: www.elororesources.com
The stock market: Open Market (Freiverkehr) in Frankfurt
ISIN (s): CA2899003008 (share)





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Eloro Resources Closes CUSD25 Million Bought Deal Financing

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