Eloro Resources Announces the Exercise in Full of the Bought Deal Financing Over-Allotment Option by the Underwriters

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

TORONTO, March 24, 2021 (GLOBE NEWSWIRE) -- Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce that, in connection with its previously announced bought deal financing (the “Financing”) (see Eloro press releases dated March 2, 2021, March 3, 2021 and March 8, 2021), and further to the filing of the final short form prospectus on March 18, 2021 with the applicable securities regulators in each of the provinces of Canada, except Quebec, Haywood Securities Inc. and Cantor Fitzgerald Canada Corporation as co-lead underwriters and joint-bookrunners, and Cormark Securities Inc. as co-lead underwriter (collectively, the “Underwriters”), have elected to exercise their over-allotment option (“Over-Allotment Option”) in full.

Under the terms of the Financing, the Over-Allotment Option granted the Underwriters an option to purchase up to an additional 870,000 units (“Units”) at a price of C$3.75 per Unit (the “Issue Price”), exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Financing. With the exercise in full of the Over-Allotment Option, the total number of Units to be sold in the Financing will be 6,670,000 Units at the Issue Price for total gross proceeds to the Company of C$25,012,500.

Each Unit will consist of one common share (a “Common Share”) in the capital of the Company and one-half (1/2) of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company. Each Warrant shall be exercisable to acquire one Common Share (a “Warrant Share”) at a price per Warrant Share of C$5.25 for a period of 24 months from the closing date of the Financing. The expiry date of the Warrants may be accelerated by the Company at any time following the six-month anniversary of the closing date of the Financing and prior to the expiry date of the Warrants if the volume-weighted average trading price of the Company’s Common Shares is greater than C$7.00 for any 20 consecutive trading days, at which time the Company may accelerate the expiry date by issuing a press release to announce the reduced warrant term, whereupon the Warrants will expire on the 20th calendar day after the date of such press release.