Bought Deal Surges to CA$15 Million as Silver and Tin Momentum Builds

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Eloro Resources Ltd. (ELO:TSX; ELRRF:OTCQX; P2QM:FSE) announced that it increased the size of its previously announced bought deal private placement from gross proceeds of CA$10,000,120 to CA$15,000,180 following what the company described as strong investor demand. Under the upsized underwritten offering, Red Cloud Securities Inc. and Cantor Fitzgerald Canada Corp., acting as co-lead underwriters and joint bookrunners on behalf of a syndicate, agreed to purchase for resale 5,769,300 common shares at a price of CA$2.60 per offered share.

The company also granted the underwriters an option exercisable up to 48 hours prior to closing to purchase up to an additional 769,300 offered shares at the same offering price for additional gross proceeds of up to CA$2,000,180. The underwritten offering and any shares issued upon exercise of the overallotment option are collectively referred to as the offering.

According to the company, net proceeds from the offering are intended to be used for continued exploration and development of the Iska Iska project in southern Bolivia, as well as for general corporate purposes and working capital.

Up to 2,307,692 offered shares will be sold to purchasers resident in Canadian provinces other than Quebec under the listed issuer financing exemption pursuant to National Instrument 45-106. The company stated that shares sold under this exemption are expected to be immediately freely tradeable in accordance with applicable Canadian securities legislation when sold to Canadian purchasers. Shares will also be offered in the United States and other jurisdictions on a private placement basis in accordance with applicable securities laws.

The offering is scheduled to close on March 6, 2026, subject to customary closing conditions, including receipt of necessary approvals such as approval of the Toronto Stock Exchange.

As stated in the news release, "As a result of strong investor demand, Eloro Resources Ltd. and Red Cloud Securities Inc. have agreed to increase the size of its previously announced bought deal private placement from gross proceeds of CA$10,000,120 to gross proceeds of CA$15,000,180."

Looking At Precious Metals and Tin Markets

According to a February 25 report from Stockhead, tin prices had reached record levels in January, rising close to US$57,000 per tonne before later pulling back to around US$46,500 per tonne. The report noted that tin had become increasingly important for technology and energy applications, stating that "with around 50% of tin production heading into the solder that glues together electronic circuit boards, it's become a critical metal for future-facing industries such as AI, data centres and electric vehicles." The International Tin Association also stated that "following years of under-investment, and tin's strong position as an energy transition metal, the market is set to experience prolonged deficits without urgent investment in supply." The same report said that global supply had faced persistent constraints, with production delays in key regions and limited new mines under development, and noted that "there just doesn't seem to be a new supply that's going to come on and flood the market."

Cantor Fitzgerald analyst Matthew O'Keefe maintained a Speculative Buy rating and a CA$4.50 per share target price.

Jason Williams of Wealth Daily wrote on February 26 that silver prices had experienced sharp volatility after surging to roughly US$120 per ounce before declining sharply and later rebounding.

He stated that "that drop wasn't a signal that the bull market was over. It was the signal that the bull market was real," and noted that volatility had been characteristic of precious metals cycles. Williams also said that silver had both monetary and industrial roles, writing that "silver isn't just a monetary metal. It's an industrial necessity, a critical input for electrification, energy infrastructure, defense technologies, and advanced manufacturing."

A February 26 sector update from Excelsior Prosperity observed that precious metals prices and mining equities had shown mixed market reactions despite strong underlying price trends. The update noted that silver had been "clawing its way back higher again, eclipsing the US$90 mark earlier this week," while precious metals equities had shown varying performance relative to metal prices. It also stated that gold and copper prices had reached new highs during the same period, reflecting broader strength across key metals markets.

According to a January 8 commentary from John Newell of John Newell & Associates, the company's flagship asset was described within the context of a broader silver market characterized by constrained supply and rising industrial demand. Newell wrote that "recent drilling has continued to enhance grade continuity in the near-surface silver-zinc-lead mineralization while expanding the deeper, higher-temperature tin domain, which adds an important strategic metal component to the story." He also stated that the project "is advancing one of the most significant undeveloped silver systems discovered in the past decade," noting that it hosts "a silver-equivalent resource exceeding one billion ounces."

In a January 19 research note following discussions with company management, Haywood Securities analyst Pierre Vaillancourt increased his firm's target price for Eloro by 67%. He wrote that "following the drilling success in 2025, the improving economic climate in Bolivia, as well as record silver prices, we believe the economic prospects for Iska Iska have improved materially."

Haywood set a new target price of CA$5 per share, up from CA$3 previously. At the time of the report, Eloro was trading at approximately CA$3.07 per share, which the analyst noted reflected a valuation of 0.47x net asset value compared with peers trading at about 0.67x. The difference between the target and the trading price implied a potential return of 63%, and the firm maintained a Buy rating.

The analyst stated that the company's 2025 drill program had reduced spacing between holes and filled gaps in areas containing higher silver grades within the resource envelope. Based on those results, Haywood expected the polymetallic domain at Iska Iska to contain about 200 million tons grading roughly 40 grams per ton silver and 1.5% zinc. These grades were described as higher than those in the August 2023 mineral resource estimate, which included grades of 13.6 grams per tonne silver and 24.3 grams per tonne silver, along with zinc grades of 0.69% and 1.11%. Vaillancourt stated that higher silver prices increased the value of the resource at these grades, particularly at around 40 grams per tonne silver.

The report also stated that a new mineral resource estimate was expected to support a preliminary economic assessment planned for the second half of 2026. According to the analyst, the assessment would evaluate a polymetallic mining operation with a mill throughput of about 25,000 tons per day producing zinc-silver and lead-silver concentrates, followed by a second stage including a tin circuit with a throughput of about 10,000 tons per day producing a tin concentrate over a projected 15-year mine life. Estimated capital expenditures were described as approximately CA$400 million to CA$500 million for the polymetallic mine and about CA$150 million to CA$200 million for the tin circuit.

In a January 19 research note, Ron Stewart of Red Cloud Securities initiated coverage with a Buy rating and a CA$5.50 per share target price. He wrote that "Iska Iska has the potential to evolve into a global leading primary silver and tin mining operation." Stewart also stated that drilling since 2020 had outlined "a large mineralized system" extending roughly 2 kilometers wide along a 4-kilometer strike and to a depth of about 1 kilometer. He further noted that analysis of more recent infill drilling suggested "potential increases of 138%, 47% and 24%, respectively," for silver, lead, and tin grades compared with averages in the existing resource.

In a February 2 report, Cantor Fitzgerald analyst Matthew O'Keefe stated that the company had secured "99% ownership, 100% economics, and full operational control" of the Iska Iska project. He maintained a Speculative Buy rating and a CA$4.50 per share target price. O'Keefe wrote that "we view the streamlined structure as a key corporate derisking milestone ahead of upcoming catalysts," and also stated that the revised ownership structure "effectively consolidat[ed] the asset… removing remaining option obligations and ownership uncertainty, and providing economic exposure and development flexibility."

Use of Proceeds and Project Development

The company stated that proceeds from the offering are intended to support continued exploration and development of the Iska Iska project in southern Bolivia.

The project hosts an inferred mineral resource that includes estimated in situ metals of 298 million ounces of silver, 4.09 million tonnes of zinc, 1.74 million tonnes of lead, and 130,000 tonnes of tin based on a mineral resource estimate dated October 17, 2023.

Eloro reported that definition drilling programs at the Santa Barbara area have intersected multiple intervals of silver-tin polymetallic mineralization. These included a drill hole that intersected 66.90 grams per tonne silver, 0.63% zinc, 0.42% lead, and 0.11% tin over 289.13 meters, along with additional intervals of silver, zinc, lead, and tin mineralization. 

The company also reported tin mineralization in multiple holes, including an interval of 33 meters grading 1.39% tin within a broader interval of 87 meters grading 0.74% tin.

Ownership and Share Structure¹

About 17% of Eloro Resources Ltd. is owned by insiders, approximately 28% by institutions, and around 2% by strategic investor Cartier Silver. The remainder is held by retail investors.

Top shareholders include Crescat Capital LLC with 15.78% and CEO Larsen with 6.89%.

Its market cap is CA$316.54 million with 110.29 million shares issued and outstanding. It trades in a 52-week range of CA$0.77 to CA$3.42.