Toronto, Canada, January 26, 2015 – Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q) (“Eloro” or the “Corporation”) is pleased to report that it has completed the previously announced shares-for-debt transactions (the “Transactions”) whereby Eloro issued 5,810,000 common shares (“Common Shares”) (of which 950,000 were issued to insiders of the Corporation) at a price of $0.05 per share in connection with the repayment of unsecured loans made to Eloro. The Transactions were undertaken by Eloro in order to conserve capital and improve the Corporation’s balance sheet while global financial markets remain turbulent and financing junior exploration companies remains difficult.
The Transactions created a new “Control Person” pursuant to applicable securities legislation as Eloro issued Cartier Iron Corporation (“Cartier”) 4,760,000 Common Shares at a deemed price of $0.05 per share in connection with the settlement of $238,000 in unsecured loans made by Cartier to Eloro.
Additionally, the following is a breakdown of the debt settled with each related party (“Related Party”), and the number of Common Shares issued to each of them:
|Name of Insider (Related Party)||Relationship to the Corporation||Loan Amount Settled|
|Shares Issued as Payment|
|Thomas Larsen||Director and Officer||10,000||200,000|
|Alexander Horvath||Director and Officer||10,000||200,000|
|Duster Capital Corp.||Private corporation controlled by Dusan Berka, a Director of the Corporation||5,000||100,000|
In accordance with the policies of the TSX Venture Exchange (“TSXV”), disinterested shareholder approval was obtained at an Eloro Special Shareholders Meeting held on January 22, 2015 for both the creation of a new Control Person and the issuance of the Common Shares to insiders who are deemed to be Related Parties. All of the securities issued by Eloro pursuant to the Transactions are subject to a 4-month hold period, expiring on May 27, 2015.
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.
For further information please contact Jorge Estepa, Vice-President at (416) 868-9168.
Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Corporation’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Corporation. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.