- Eloro Resources (TSXV:ELO) has completed its previously announced non-brokered private placement for gross proceeds of C$1.5 million
- The company issued a total of five million units at a price of 30 cents each
- Each unit consists of one common share in the company and half of one common share purchase warrant
- The proceeds raised under the placement will be used to fund exploration activities at the company’s optioned Iska Iska Property in Bolivia
- Eloro Resources (ELO) is currently up 7.27 per cent and is trading at 59 cents per share
Eloro Resources (TSXV:ELO) has completed its previously announced non-brokered private placement for gross proceeds of C$1.5 million.
Under the terms of the placement, the company issued a total of five million units at a price of 30 cents each. These units were comprised of one common share in the company and half of one common share purchase warrant.
Each whole warrant entitles the holder to acquire an additional common share at a price of 50 cents, exercisable over a period of 24 months from the date of issuance.
A key subscriber in the placement was Crescat Capital. Two of the company’s funds participated in the offering, purchasing a total of 4.5 million units at an aggregate cost of $1.35 million.
Headquartered in Denver, Colorado, the asset management firm is primarily focused on acquiring activist stakes in the precious metals exploration industry.
In connection with its investment, Crescat has also been granted the right to participate in any future placements for a number of shares that would maintain its percentage holding in Eloro Resources.
Such an anti-dilution right is exercisable up to seven days before the closing of the applicable placement, and expires on June 9, 2023.
The proceeds raised under the placement will be used to fund exploration activities at Eloro’s Iska Iska Property in Bolivia. A portion will also be used for work at the company’s other assets in Peru, and for general working capital purposes.
The company currently has an option to acquire a 99 per cent interest in the Iska Iska Property, which sits within the Potosi Department in southern Bolivia. Eloro also recently contracted Micon International to undertake an NI 43-101 Technical Report on the property, which is thought to host a polymetallic epvthermal-porphyry complex.
Eloro Resources (ELO) is currently up 7.27 per cent and is trading at 59 cents per share at 12:32pm EDT.
