(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
Refining.
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 Sakura.
Technical Report
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.
Private Placement
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 Exchange.
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.
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.