Business
Elcora Resources Corp. Signs LOI to Acquire Prospective Graphite Properties in Sri Lanka
/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMER...
About this update from Elcora Advanced Materials Corp.
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE\n UNITED STATES OF AMERICA/\n\n\nTrading Symbol:  TSX-V: ERA\nShares Issued:  17,853,163\n\n\nHALIFAX, Nov. 5, 2013 /CNW/ - Elcora Resources Corp. (\"Elcora\" or the\n \"Company\") announces the Company has signed a binding letter of intent\n (\"LOI\") to acquire all of the issued and outstanding common shares of\n Graphene Corp. (PvT) Ltd., a Sri Lankan company (\"Graphene\").  Graphene\n is the owner of exploration application licenses for 100 metric grid\n units located in Sri Lanka covering approximately 100 square kilometers\n (the \"Graphite Claims\").  The acquisition of the Graphene common shares\n does not involve a Non Arms Length Party.\n\n\nElcora's President and CEO, Troy Grant, commented:\n\n\n\"This is a high-grade graphite prospect that I believe can bring\n substantial value and growth to the Company. Sri Lankan graphite is\n unique in the world and can be as high as 99 percent pure in the\n ground.  Elcora focused on past graphite producing areas in Sri Lanka\n with known graphite occurrences and chose to acquire these Graphite\n Claims in Sri Lanka.  Sri Lankan graphite should enable Elcora to\n minimize costs and target high end graphite markets.  Our experienced\n international team will focus squarely on unlocking the potential of\n this graphite property for the shareholders in the coming months.\"\n\n\nThe Transaction\n\n\nUnder the terms of the LOI, Elcora will pay $2,250,000 US and issue\n 6,300,000 common shares of Elcora on the closing date to purchase all\n of the shares of Graphene (the \"Transaction\").  The $2,250,000 shall be\n payable as follows:\n\n\n\n\n\n\n\nDATE OF PAYMENT\n\n\nAMOUNT OF PAYMENT\n\n\n\n\nOn the Closing Date\n\n\n$350,000\n\n\n\n\n6 months after the Closing Date\n\n\n$400,000\n\n\n\n\n12 Months after the Closing Date\n\n\n$375,000\n\n\n\n\n18 months after the Closing Date\n\n\n$375,000\n\n\n\n\n24 months after the Closing Date\n\n\n$375,000\n\n\n\n\n28 months after the Closing Date\n\n\n$375,000\n\n\n\n\nTOTAL PURCHASE PRICE\n\n\n$2,250,000\n\n\n\n\n\n\n\nThe Transaction is subject to TSX Venture Exchange (the \"Exchange\") and\n other regulatory approvals. As well, closing is subject to satisfactory\n due diligence by the Company, a geological report compliant ...