Trading Symbol: TSX-V: ERA
Shares Issued: 22,453,163
(Not for distribution to US wire services or for dissemination in the
United States of America)
HALIFAX, Feb. 20, 2014 /CNW/ - Elcora Resources Corp. ("Elcora" or the
"Company") announces the Company has signed a binding letter of intent
("LOI") to acquire 40% of the outstanding shares of Sakura Graphite
Sakura Graphite (Pvt) Ltd ("Sakura") controls 99 acres in Sri Lanka,
which includes the past producing Ragedara graphite mine (the
"Property"). The Property has an unrestricted exploration license
covering 4 square kilometres and a mining license for unlimited monthly
production. Historically, the state owned Ragedara mine operated
between 1974 and 1985 and produced as much as 18,000 tons per year of
high purity graphite. The Ragedara graphite is of natural crystalline
vein type. Sakura has developed the mining project over the last 3
years and is now nearing readiness to begin production with much of the
mining equipment having been upgraded over the last two years.
Upgrading of the remaining equipment will continue as the Company
progresses the project towards becoming a fully integrated graphite
producer. Through this transaction Elcora will be the operator of the
mine with the intention of beginning production. A feasibility study
was completed for Sakura for the Property, but it has not yet been
verified by Elcora and there is no certainty the proposed operation
will be economically viable. The transaction is not a non-arms length
Under the terms of the LOI to acquire the common shares of Sakura,
Elcora will issue 5,066,667 common shares of Elcora and 7,856,000
warrants to purchase common shares of Elcora.
The LOI is subject to TSX Venture Exchange (the "Exchange") and other
regulatory approvals. As well, the closing is subject to satisfactory
due diligence being completed by Elcora.
Elcora also intends to complete its previously announced non-brokered
private placement offering with a full warrant attached entitling the
holder to acquire one common share of Elcora for $0.30 for 18 months
(the "Offering") for a minimum offering of $500,000 and a maximum
offering of $750,000.
The Offering is subject to certain conditions, including but not limited
to the receipt of all required regulatory approvals and consents,
including the approval of the Exchange. The securities issued pursuant
to the Offering will be subject to a hold period expiring four months
and one day after the closing of the Offering in accordance with
applicable securities laws and, if required, the policies of the
Termination of LOI
Elcora also announces that it has terminated its previously announced
Letter of Intent with Graphene Corp. (Pvt) Ltd. to enter into an option
agreement to acquire exploration application licenses for 100 metric
grid units for graphite located in Sri Lanka.
Trading of Elcora's stock has been halted and will remain halted,
pursuant to Exchange Policy 5.3.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. No stock Exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein. This News Release includes certain
"forward-looking statements". All statements other than statements of
historical fact, included in this release, including, without
limitation, statements regarding potential mineralization and reserves,
exploration results, and future plans and objectives of Elcora, are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from Elcora's
expectations are exploration risks detailed herein and from time to
time in the filings made by Elcora with securities regulators.
Investors are cautioned that, except as disclosed in the filing
statement prepared in connection with the transaction, any information
released or received with respect to the transaction may not be
accurate or complete and should not be relied upon.
SOURCE Elcora Resources Corp.