(Not for distribution to US wire services or for dissemination in the
United States of America)
Trading Symbol: ERA:TSX-V
Shares Issued: 39,619,980
HALIFAX, June 30, 2014 /CNW/ - Troy Grant, President and CEO of ELCORA RESOURCES CORP. (TSXV: ERA), (the "Company" or "Elcora"), is pleased to announce that it
has completed the purchase of 40% of the issued and outstanding shares
of Sakura Graphite (PVT) Ltd of Sri Lanka ("Sakura") and it has
appointed Dr. Ian Flint as VP of Processing and Refining. .
With the purchase of Sakura complete, Elcora will immediately start to
focus on the processing and refining of the graphite deposit at the
Sakura Graphite Mine and Dr. Ian Flint's experience and background in
graphite processing is crucial to Elcora's plan get into production in
the next year. Dr. Flint brings 30 years of graphite experience
including metallurgical test work, process development & engineering,
plant & equipment design and operations. Dr. Flint also brings years
of graphite research experience into different Graphene applications to
the company. Dr. Flint states: "The material at the Sakura Graphite
Ragadara mine shows very unique and excellent promise for high end
applications and I am excited to commence processing this graphite into
a high quality form. The resulting Elcora processing plant will be a
large step forward for Sri Lanka and should re-establish Sri Lanka as a
reliable, high quality graphite producer"
As previously announced (See PR dated May 13, 2014), Elcora entered into
an arm's length binding definitive share purchase agreement dated March
25, 2014 (the "Agreement") with Sakura to purchase 40% of the issued
and outstanding shares of Sakura (the "Transaction"). Sakura operates
the Sakura Graphite Mine located on Sakura's leased plots totaling 70
acres in Sri Lanka (the "Mine"). The industrial mining license,
exploration licenses and environmental license for the Mine are
currently being held by J.D.K. Wickramaratne for the sole benefit of
Sakura and will be transferred to Sakura upon renewal. 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.
Elcora will provide the remaining capital expenditure required to put
the Mine back into commercial production. No Finders Fee is payable
for the Transaction.
Pursuant to the Transaction, Elcora has issued a total 6,827,442 common
shares of Elcora at a price of $0.19 per share (the "Shares") to
shareholders of Sakura on the Closing Date. Elcora will also issue
6,827,442 warrants to the shareholders of Sakura to purchase common
shares of Elcora (the "Warrants"). Each Warrant entitles the holder of
such Warrant to purchase one common share of Elcora at a price of $0.19
for a period of 5 years. Sakura shall be entitled to appoint one
director to Elcora's board, but is not appointing a director to
Elcora's board at the closing of this Transaction.
KWA Holdings (Private) Ltd. ("KWA") owns the remaining 60% of the
outstanding shares of Sakura. J.D.K. Wickramaratne, a Sri Lankan
citizen, will be the sole officer, director and shareholder of KWA.
Upon closing, Dr. Ian Flint will be appointed VP VP of Processing and
KWA and Elcora have entered into a shareholders agreement for Sakura
(the "Shareholders Agreement"). The Shareholders Agreement grants to
the CEO of Sakura control of daily management and conduct of all the
company's business, including completion of other transactions or
corporate actions, choosing and communicating with Sakura's auditors,
Sakura's internal policy for any related party transactions, Sakura's
internal policy and controls to ensure that any material information
concerning Sakura is disclosed in a news release by Elcora, the
internal control system for the financial reporting of Sakura and
payment of all mine management and processing and refining fees by
A report on the Sakura Ragedara Property was prepared by Marc Filion,
P.Eng. on behalf of Elcora to comply with the Geological reporting and
disclosure requirements set out under National Instrument 43-101 (the
"Geological Report"). The TSX Venture Exchange is satisfied that the
report meets the Exchange's guidelines. The Report is on SEDAR and can
be viewed at www.sedar.com.
As previously announced, on May 13, 2014, Elcora closed a non-brokered
private placement in trust for $1,436,300 (the "Private Placement")
pending completion of the Transaction. 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 8,976,875 Warrants.
The Private Placement was closed in trust pending the closing of the
Transaction. As the Transaction has now closed, the Private Placement
has also closed. 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
Board of Directors
The Board of Directors of Elcora will continue to be Troy Grant, Theo
van der Linde, John Cumming and Gregory Isenor. Troy Grant will
continue to act as President and CEO and Theo van der Linde will
continue to act as CFO and Corporate Secretary. Dr. Ian Flint will
become the VP Processing and Refining for Elcora.
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.