Eloro Resources has acquired the Simkar gold property near Val-d'Or, Québec from Megastar Development. Eloro issues 70,000,000 common shares to Megastar for this acquisition.
The procuring of Megastar's Simkar property was allowed in exchange for the Eloro Common Shares on a tax-deferred basis in relation to the current tax norms of Canada.
Eloro had an option to buy an exclusive 50% interest in Simkar property from Megastar before closing the acquisition. But, effective from February 28, 2011, Megastar had transferred the Simkar property to Eloro and currently, Eloro holds 100% interest in the property. Escrow has released Eloro’s common shares and Megastar has issued them to its shareholders as per the agreement. The hold period for the Eloro common shares, which were given to Megastar shareholders was terminated on March 19, 2011.
Eloro has started the phase II, 10,000 m surface drilling program at the Simkar Property in Quebec. The Simkar Property has two adjacent mining concessions inside the fertile Abitibi Greenstone Belt and contains a dense series of east-west trending. Geologically, intrusion-centered gold-quartz-tourmaline vein system is identical to the Sigma-Lamaque Gold Deposit and the Abitibi Belt.
Source: http://www.elororesources.com/