Eloro active on $5.0 million bought deal financing news
Eloro Resources Ltd. [ELO-TSX, ELRRF-OTCQX, P2QM-FSE] has announced details of a $5.0 million bought deal private placement financing, with proceeds earmarked for exploration and development of the company’s Iska Iska project in southern Bolivia.
Eloro has struck a deal with an underwriter who has agreed to purchase 4.34 million units priced at $1.15 each on a bought deal basis.
Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share for $1.60 at any time before that date which is 36 months after closing, likely on September 4, 2025.
The underwriter has been granted the option to purchase for resale up to an additional 870,000 units at the offering price, potentially generating proceeds of just over $1.0 million. That overallotment option can be exercised up to 48 hours prior to the date of closing.
Eloro shares were active on the news, easing 13.5% or 18 cents to $1.15 and trade in a 52-week range of $1.67 and 77 cents.
Eloro recently said it has reached an exciting phase in the development of its silver-tin polymetallic discovery in southern Bolivia, where the company hopes to announce a preliminary economic assessment by the end of this year.
Eloro is targeting two different deposit styles juxtaposed against one another; a very large silver-zinc-lead dominant system located next to a high-grade tin system. It is expected that both will become part of a single bulk tonnage open pit mining operation at the Iska Iska property.
The company has been conducting a definition in-fill drill program that aims to improve the tonnage and grade announced in a 2023 resource estimate that pegged the inferred resource in a polymetallic domain at 560 million tonnes of grade 13.8 g/t silver, 0.73% zinc, and 0.28% lead, and a potentially open-pittable resource of 110 million tonnes of 0.12% Sn(tin), 14.2 g/t silver and 0.14% lead in a separate tin domain.
In a press release on January 23, 2025, Eloro said it had opened up a major tin zone, intersecting 33 metres of grade 1.39% Sn (tin) within 87 metres of grade 0.74% Sn in a definition program at Iska Iska. The company said tin mineralization is hosted in an extensive breccia unit that is approximately 750 metres long by 450 metres wide and extends to a depth of 700 metres.
Tin is widely used for plating steel cans used for food containers, and in metals used for bearings, and in solder. The Mining Journal has described tin as “the glue which holds together all of the world’s electronics and is vital to both digital and energy transitions.”