Eloro raising up to $5 million for Bolivian metals project
Eloro Resources Ltd. [ELO-TSX, ELRRF-OTCQX, P2QM-FSE] said it has struck a deal with a syndicate of agents in connection with a private placement financing that is expected to generate proceeds of up to $5.0 million.
The company said it will use the proceeds for continued exploration and development of the Iska Iska silver-tin polymetallic project in southern Bolivia.
Under the terms of the financing, Eloro is planning to issue up to 5.26 million units at a price of 95 cents per unit. 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 $1.40 at any time on or before that date which is 36 months after closing, which is expected to occur on April 8, 2025.
The agents will have an option to sell up to an additional 1.05 million units at the offering price, a move that would generate another $1.0 million in gross proceeds. That option can be exercised for up to 48 hours prior to the closing date.
Eloro shares eased 7.0% or $0.07 to 93 cents in early trading Friday and trade in a 52-week range of $1.91 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.
The company has announced an initial inferred resource estimate of 1.15 billion in-situ ounces of silvder equivalent for Iska Iska. That includes 298 million ounces of silver, 4.09 million tonnes of zinc, and 1.74 million tonnes of lead. The company says Iska Iska has the potential to host two substantial deposits on the same project.