Deal to finance exploration at the Simkar gold property in Quebec
By Susanna Moon
Chicago, Sept. 1 - Eloro Resources Ltd. said it plans a C$3 million non-brokered private placement of units of one share and one half-share warrant. About two-thirds of the units will be issued on a flow-through basis.
The company plans to sell up to 10 million flow-through units at C$0.20 each for proceeds of up to C$2 million and up to 5,555,555 non flow-through units at C$0.18 each for proceeds of up to C$1 million.
Warrants issued under the flow-through units will be exercisable at C$0.40 each for 18 months, with the strike at a 275% premium to the company's closing price on Aug. 31. If the company's shares close at or above C$0.60 for 20 consecutive trading days, they will expire unless they are not exercised within 10 business days after notice.
Warrants for the regular units will be exercisable at C$0.36 for 18 months, unless the company's shares close at or above C$0.54 for 20 consecutive trading days, in which case they will expire unless they are not exercised within 10 business days after notice.
The strike price for the regular unit warrants is a 237.5% premium to the closing price on Aug. 31.
Proceeds will be used to finance exploration at the Simkar Gold Property near Val d'Or in Quebec and for working capital purposes.
Eloro is a mineral exploration company based in Toronto.
| Issuer: | Eloro Resources Ltd.
|
| Issue: | Flow-through units of one flow-through share and one half-share warrant, units of one common share and one half-share warrant
|
| Amount: | C$3 million
|
| Agent: | Non-brokered
|
| Pricing date: | Sept. 1
|
| Stock symbol: | TSX Venture: ELO
|
| Stock price: | C$0.16 at close Aug. 31
|
| Market capitalization: | C$6.72 million
|
|
|
| Flow-through units
|
| Amount: | C$2 million
|
| Units: | 10 million
|
| Price: | C$0.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.40
|
|
|
| Units
|
| Amount: | C$1 million
|
| Units: | 5,555,555
|
| Price: | C$0.18
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.36
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
