(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) ("Elcora")
Transaction
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.
Private Placement
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 8,976,875 Warrants.
The Private Placement has been closed in trust
pending the closing of the Transaction.
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.
CAUTIONARY STATEMENT:
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.