Eloro Resources Completes Financing
Eloro Resources Ltd. (TSX VENTURE:ELO)(FRANKFURT:P2Q) (“Eloro” or the “Corporation“) is pleased to announce that it has completed a previously announced non-brokered private placement (the “Private Placement”) of 1,500,000 units of Eloro at a price of $0.10 per unit (“Units”) for proceeds of $150,000.
Each Unit consists of one Common Share and one Common Share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one Common Share at a price of $0.15 per share for a term of 24 months, expiring February 19, 2017.
The proceeds of the Private Placement will be used for working capital purposes and to finance exploration efforts on Eloro’s optioned and wholly-owned properties. The Private Placement is subject to final approval by the TSX Venture Exchange. Certain directors and officers of the Corporation participated in the Private Placement. All securities issued pursuant to the Private Placement are subject to the applicable statutory four month hold period.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Peru and northern and western Quebec. The Corporation recently entered into an agreement granting it an option to acquire a 50% interest in La Victoria property, located in the North-Central Mineral Belt of Peru.
LA VICTORIA PROPERTY, PERU
Eloro is focused on exploring its recently optioned La Victoria polymetallic property located in the North-Central Mineral Belt of Peru.
La Victoria is a royalty-free property, wholly-owned by Tartisan Resources Corp. (CSE: TTC), consisting of nine claims totaling 4,360 hectares. The property has good infrastructure with access to road, water and electricity.
La Victoria is located within 50 km of several producing mines including: La Arena owned by Rio Alto Mining Ltd., Lagunas Norte (Alto Chicama) owned by Barrick Gold Corporation and Santa Rosa owned by Compañia Minera Aurifera Santa Rosa (COMARSA).
Eloro can earn a 50% interest in La Victoria by expending C$1.5 million in staged exploration and work expenditures and by making cash payments to Tartisan totalling C$150,000 (C$50,000 already paid) — all over a 4 year period. The Year 1 exploration expenditure requirement is only C$250,000.
The geological setting at La Victoria is similar to producing mines in the area and presents excellent potential for epithermal precious-metal and porphyry-style copper mineralization. The property is in the heart of the Ancash – La Libertad mining area in the North-Central Mineral Belt of Peru, 425 km north of Lima, 120 km east of Trujillo at 3,100 m to 4,299 m elevation.
La Victoria has seen nearly $1 million in exploration expenditures already incurred by Tartisan to date. This includes the construction of a 10 km access road to the San Markito zone, a topographic survey with geodesic benchmarks, a magnetic survey (125 line km), an IP survey (34 line km), spectral analysis, rock sampling and the preparation of a NI 43-101 compliant technical report.
La Victoria has clearly identified target areas, including: San Markito-Victoria (Ag, Au) Rufina (Au, Ag) and Ccori Orcco (Ag, Cu). It is anticipated that the Phase 1 drill program (min. 1,000 m) would test the San Markito IP target. Follow-up exploration phases would test other known targets in the property area.