Eloro Resources closes $17-million financing

Executive Summary

• Eloro Resources Ltd. has closed its previously announced bought deal private placement, raising gross proceeds of C$17,000,360.
• The company sold 6,538,600 common shares at a price of $2.60 per share, including the full exercise of the overallotment option.
• Net proceeds will be used for the exploration and development of the Iska Iska project in Bolivia, as well as general corporate purposes and working capital.

Key Details

• Gross Proceeds: $17,000,360 (C$17 million).
• Shares Issued: 6,538,600 common shares.
• Price Per Share: $2.60.
• Underwriters: Red Cloud Securities Inc. and Cantor Fitzgerald Canada Corp. acted as co-lead underwriters and joint bookrunners; Haywood Securities Inc. was also part of the syndicate.
• Use of Proceeds: Continued exploration and development of the Iska Iska project in southern Bolivia, general corporate purposes, and working capital.
• Regulatory Exemptions:
  • 1,941,100 shares issued to Canadian purchasers under the listed issuer financing exemption (NI 45-106); these shares are immediately freely tradeable.
  • Remaining shares issued to non-Canadian purchasers under OSC Rule 72-503; no four-month hold period in Canada.
• Underwriter Compensation:
  • Aggregate cash fees: $1,020,021.60.
  • Broker warrants: 392,316 non-transferable common share purchase warrants.
  • Warrant Terms: Exercisable into one common share at $2.60 (offering price) on or before March 6, 2028.
  • Warrant Hold Period: Subject to a hold period in Canada expiring on July 7, 2026.
• Related Party Transaction: An insider participated in the offering. The fair market value of the consideration was $2,501,200, which did not exceed 25% of the company's market capitalization, thus exempting the transaction from formal valuation and minority shareholder approval requirements under MI 61-101.
• Status: Closing is subject to final approval of the Toronto Stock Exchange.