Elcora Resources Corp. Signs LOI to Acquire Ownership in Sakura Graphite (Pvt) Ltd., a Sri Lankan Graphite Company and Terminates Previous LOI with Graphene Corp. (Pvt) Ltd.

About this update from Elcora Advanced Materials Corp.

[{"type":"text","content":"\n\n\nTrading Symbol:  TSX-V: ERA\nShares Issued:  22,453,163\n\n\n(Not for distribution to US wire services or for dissemination in the\n United States of America)\n\n\n\n\nHALIFAX, Feb. 20, 2014 /CNW/ - Elcora Resources Corp. (\"Elcora\" or the\n \"Company\") announces the Company has signed a binding letter of intent\n (\"LOI\") to acquire 40% of the outstanding shares of Sakura Graphite\n (Pvt) Ltd.\n\n\nSakura Graphite (Pvt) Ltd (\"Sakura\") controls 99 acres in Sri Lanka,\n which includes the past producing Ragedara graphite mine (the\n \"Property\"). The Property has an unrestricted exploration license\n covering 4 square kilometres and a mining license for unlimited monthly\n production. Historically, the state owned Ragedara mine operated\n between 1974 and 1985 and produced as much as 18,000 tons per year of\n high purity graphite. The Ragedara graphite is of natural crystalline\n vein type. Sakura has developed the mining project over the last 3\n years and is now nearing readiness to begin production with much of the\n mining equipment having been upgraded over the last two years.\n Upgrading of the remaining equipment will continue as the Company\n progresses the project towards becoming a fully integrated graphite\n producer. Through this transaction Elcora will be the operator of the\n mine with the intention of beginning production. A feasibility study\n was completed for Sakura for the Property, but it has not yet been\n verified by Elcora and there is no certainty the proposed operation\n will be economically viable. The transaction is not a non-arms length\n transaction.\n\n\nThe Transaction\n\n\nUnder the terms of the LOI to acquire the common shares of Sakura,\n Elcora will issue 5,066,667 common shares of Elcora and 7,856,000\n warrants to purchase common shares of Elcora.\n\n\nThe LOI is subject to TSX Venture Exchange (the \"Exchange\") and other\n regulatory approvals. As well, the closing is subject to satisfactory\n due diligence being completed by Elcora.\n\n\nPrivate Placement\n\n\nElcora also intends to complete its previously announced non-brokered\n private placement offering with a full warrant attached entitling the\n holder to acquire one common share of Elcora for $0.30 for 18 months\n (the \"Offering\") for a minimum offering of $500,000 and a maximum\n offering of $750,00...

More updates from Elcora Advanced Materials Corp.