Eloro Resources (TSXV: ELO) this morning announced the closing of its bought deal private placement. The financing saw a total of $25.0 million raised in gross proceeds for the company, including the exercise of the over-allotment option.
Under the terms of the financing, 6.7 million units of the company were sold at a price of $3.75 per each. Each unit contained one common share and one half of a common share purchase warrant, with each warrant being valid for a period of two years from the date of issuance and containing an exercise price of $5.25 per share.
An acceleration clause is also present on the warrants, enabling the company to accelerate the expiry of the warrants in the event that the equity trades above $7.00 for twenty consecutive trading days on a volume weighted basis.
Proceeds from the financing are to be used for the continued exploration and project development of the firms Iska Iska property in Bolivia, where a 6,000 metre drill program is currently underway. The closing of the offering is expected to expand that drill program to 51,000 metres. Furthermore, $2.5 million from the financing is expected to go towards the $10.0 million price tag to acquire a 99% stake in the property.
Eloro Resources last traded at $3.57 on the TSX Venture.
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