- Eloro Resources announced the successful completion of its primary share issuance in late January, 2023
- The placement, which comprised of over 3.4 million primary shares issued at a price of c$3.15, raised gross proceeds of approximately C$10.9mn
- The proceeds will be destined to Eloro’s ongoing Bolivian mining operations as well as general corporate purposes
- Eloro Resources is set to disclose its initial resource estimates for its flagship Iska Iska Project in coming months
Eloro Resources (TSX.V: ELO) (OTCQX: ELRRF) (FSE: P2QM), an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec, announced that it had successfully concluded its previously announced, fully-underwritten primary share placement on January 27th, 2023. The offering, which consisted in Eloro issuing 3,466,540 primary shares at a price of C$3.15 per share, raised total gross proceeds of C$10,919,570; the figure also includes shares granted as part of the over-allotment option granted to underwriters. The offering was led by Cantor Fitzgerald Canada Corporation as lead underwriter and sole bookrunner, with Cormark Securities Inc., Haywood Securities Inc., National Bank Financial Inc., Scotia Capital Inc., and Stifel Nicolaus Canada Inc forming pact of the underwriting syndicate (https://ibn.fm/Z1K1u).
In addition to the successful completion of the deal, Eloro Resources simultaneously revealed that two company directors had participated in the bookbuild process, subscribing for the equivalent of C$147,420 in new shares. The related party transaction will drive insider ownership of the company’s free float to well over 15%, further reinforcing the management’s strong ties to the firm’s underlying corporate performance (https://ibn.fm/P7IFs).
Eloro Resources have further revealed that the net proceeds derived from the offering will be destined toward exploration and development purposes at the company’s ongoing mining projects in Bolivia as well as for general working capital and corporate purposes.
Eloro Resources’ chief mining asset within Bolivia comprises of the Iska Iska project, a 484 square kilometre undeveloped mining tract within the Potosi region – located a mere 180 kilometers south of the prolific Cerro Rico deposit, long renown as richest silver deposit throughout history. Since commencing the inaugural drill program at the Iska Iska site in September 2020, Eloro Resources has drilled over 120 holes and 85,000 meters within the property, however it was their initial discoveries in late 2020 that convinced the company of the site’s relative potential. Between November 2020 and January 2021, the company found that its initial holes – most of which were between 250 and 300 meters in length, were delivering bulk tonnage of 150 silver grams equivalent per ton – a level of silver concentration which has been found to be economically viable for mining purposes in the past.
More recently, Eloro Resources has sought to expand on its holdings within the Potosi region, acquiring the Mina Casiterita and Mina Hoyada properties, both of which adjoin the existing Iska Iska deposit towards the property’s western and south-western boundaries. The company has now set its sights towards completing and publishing their initial resource estimates for the Iska Iska project by March 2023, a process which is being carried out in collaboration with mining consultancy, Micon International.
Research reports published by research brokerages Cantor Fitzgerald and Haywood Capital Markets have previously forecast Eloro Resources’ potential silver deposit estimates at ‘630 MMox AgEq’, a figure which may be further supplemented by tin production akin to a ‘40 ktpd operation, for annual product 106 Mlbs of SnEq’. Following the company’s successful capital raising exercise and benefitting from exponential demand growth for both, silver and tin as a result of the ongoing global transition towards renewable energy sources, Eloro Resources look well placed to capitalize on any forthcoming resources discoveries in the coming months.
For more information, visit the company’s website at www.EloroResources.com.
NOTE TO INVESTORS: The latest news and updates relating to ELRRF are available in the company’s newsroom at https://ibn.fm/ELRRF
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