(Not for distribution to US wire services or for dissemination in the
United States of America)
Trading Symbol: ERA:TSXV
Shares Issued: 32,792,538
HALIFAX, May 13, 2014 /CNW/ - Elcora Resources Corp. (TSXV: ERA)
As previously announced Elcora has entered into a definitive share
purchase agreement dated March 25, 2014 with Sakura Graphite (PVT) Ltd
of Sri Lanka ("Sakura"). Upon completion of this transaction Elcora
will own 40% of the issued and outstanding shares of Sakura (the
"Transaction"). Sakura operates the Sakura Graphite Mine located in
Sri Lanka (the "Mine"). In addition, Elcora will earn 20% of the net
income from the Mine as the Mine operator, and an additional 30% of the
net income from the Mine for managing the processing of the graphite,
for the life of the Mine. Historically, the Mine operated between 1974
and 1985 and produced as much as 18,000 tons per year of high purity
graphite. The graphite from the Mine is of natural crystalline vein
type. Sakura has invested in and developed the Mine over the last 3
years and is now nearing readiness to begin commercial production, with
much of the mining equipment having been upgraded over the last two
years. Upgrading of the remaining equipment will continue as Sakura
progresses the project towards becoming a fully integrated graphite
producer. Pursuant to the terms of the Transaction, Elcora will provide
the remaining capital expenditure required to put the Mine back into
commercial production. The Transaction is not a non-arms length
transaction. No Finders Fee is payable for the Transaction.
Elcora has closed in trust its previously announced non-brokered private
placement for $1,436,300 (the "Private Placement"). The Private
Placement was subscribed for at $0.16 per common share with a full
warrant attached entitling the holder to acquire one common share of
Elcora for $0.30 for 18 months (the "Warrant"). Pursuant to the
Private Placement, Elcora will issue 8,976,875 common shares and
The Private Placement has been closed in trust pending the closing of
The securities issued pursuant to the Private Placement will be subject
to a hold period expiring four months and one day after the closing of
the Private Placement in accordance with applicable securities laws
and, if required, the policies of the Exchange.
Elcora has also issued 1,062,500 common shares and 1,062,500 Warrants to
settle outstanding debt in the amount of $170,000 in accordance with
Exchange Policy 4.3.
This press release was prepared under the supervision of Marc Filion,
P.Eng., who is a Qualified Person.
Completion of the Transaction is subject to a number of conditions,
including but not limited to, Exchange acceptance and approval and all
other required regulatory approvals.
Elcora's stock resumed trading on Monday, May 5, 2014.
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.
For further information:
Troy Grant, Director, President and CEO, Elcora Resources Corp., T: 902 802-8847 F: 902 446-2001.