Eloro Resources (TSX-V:ELO; OTCQX:ELRRF; FSE:P2QM) has raised $25 million for mineral exploration in Bolivia by issuing 6.67 million units priced at $3.75 each. Each unit consists of one common share and one-half of one common share purchase warrant. The warrants are exercisable to acquire shares at a price of $5.25 for a period of 24 months.
The offering was underwritten on a bought deal basis by Haywood Securities and Cantor Fitzgerald Canada as co-lead underwriters and joint book runners, and Cormark Securities as co-lead underwriter.
Eloro will use the proceeds for continued exploration at its Iska Iska silver-gold-zinc-lead porphyry-epithermal complex. The property is in the southwest part of Bolivia’s Eastern Cordillera. The age of the mineralization is similar to Cerro Rico de Potosi and other major deposits located in the same geological trend.
The company signed a definitive option agreement for the property in January 2020 and owns 99% of the project. The site is fully permitted for exploration, accessible by road, and has never been drilled. The agreement has no fixed expenditure requirement or royalties.
A 43-101 report was prepared by Micon International a year ago. Although no estimate of potential resources is available, the report outlined planned trenching and diamond drilling. All drilling is currently planned for the surface, but there is underground access for drilling in the future.