Eloro raises $3.78 million for Bolivia silver project
Eloro Resources Ltd. [ELO-TSX, ELRRF-OTCQX, P2QM-FSE] said it has raised $3.78 million from a non-brokered private placement offering and will use the proceeds for continued exploration and development of the Iska Iska project in Bolivia.
The offering consisted of 4.2 million units priced at 90 cents per unit, with each unit consisting of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at an exercise price of $1.50. The expiry date is each warrant is two years after the closing.
The offering included a lead order from the company’s largest shareholder and strategic investor, Crescat Capital LLC.
Eloro shares were unchanged at $1.02 in early trading Friday and trade in a 52-week range of $2.50 and 77 cents.
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 100% interest in the highly prospective Iska Iska project, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, southern Bolivia.
Under an option agreement signed in January 2020, Eloro issued the title holder 250,000 common shares in February, 2020, and as per the definitive option agreement, issued a further 250,000 shares in January, 2022. Under the agreement, Eloro was required to pay US$10 million to the title holder by July 6, 2024. In March, 2024, Eloro said it had made advanced payments of US$4.9 million. However, under an amended payment schedule, Eloro agreed to pay the vendor US$500,000 by April 30, 2024, US$1.0 million by May 30, 2025, with the remaining US$3.6 million due on or before July, 6, 2025.
The Iska Iska Porvenir Concession is a road accessible, royalty-free property that covers an area of 900 hectares and is located 40 kilometres north of Tupiza city in the Sud Chichas Province of the Department of Potosi.
The complex extends along strike in a general north, northwest, south, southeast direction for at least four kilometres, a width of at least 2.0 kilometres and likely extends to a depth of more than one kilometre.
Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska  in September, 2020. Two months later the company announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings.
In August, 2023, the company announced an initial inferred resource estimate of 670 million tonnes containing 1.15 billion in-situ ounces of silver equivalent for Iska Iska.
Eloro CEO Tom Larsen recently said updated modelling of the potential starter pit area at Santa Barbara zone highlights the importance of completing additional drilling to better define the grade and extent of the mineral resource in this area.
He said the engineering team has made major strides on a preliminary economic assessment.