Eloro Resources Completes Option Payments on the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Rhea-AI Summary

Eloro Resources (OTCQX: ELRRF) completed all option payments to Empresa Minera Villegas, enabling its Bolivian unit Minera Tupiza to acquire a 99% joint venture interest and 100% economic participation with full operational control of the Iska Iska silver-tin polymetallic project in Potosí, Bolivia.

Eloro made a final payment of US$1,150,000 and placed US$1,800,000 into a trust to be paid to Minera Villegas within 12 months after Minera Villegas secures mining rights for Mina Casiterita and Mina Hoyada; an Addendum will be filed with Bolivian authorities for approval.

Positive

• Completed option payments totaling US$1.15M final payment
• Placed US$1.8M into trust to satisfy contingent obligation
• Minera Tupiza now holds 99% JV interest and 100% economic participation
• Eloro retains full operational control of Iska Iska

Negative

• Remaining US$1.8M trust disbursement contingent on Minera Villegas securing mining rights
• Transaction requires Bolivian mining authority approval, creating regulatory timing risk
• Minera Villegas retains a 1% JV interest, limiting absolute ownership

News Market Reaction

-0.72%

1 alert

-0.72% News Effect

On the day this news was published, ELRRF declined 0.72%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Toronto, Ontario--(Newsfile Corp. - January 29, 2026) - Eloro Resources Ltd. (TSX: ELO) (OTCQX: ELRRF) (FSE: P2QM) ("Eloro", or the "Company") is pleased to announce that it has paid all option payments payable to Empresa Minera Villegas SRL ("Minera Villegas") to complete the option held by its Bolivian subsidiary, Minera Tupiza SRL ("Minera Tupiza") to acquire a 99% joint venture interest in the Iska Iska silver-tin polymetallic project in Potosí, Bolivia ("Iska Iska"). Eloro made the final payment of US$1,150,000 today and, in accordance with an Addendum to the Option Agreement, Eloro transferred US$1,800,000 into a trust account for payment to Minera Villegas within 12 months after Minera Villegas obtains the mining rights over the Mina Casiterita and Mina Hoyada mining areas. Through a series of strategic regulatory and commercial agreements Minera Tupiza SRL now holds a 99% joint venture interest and has 100% economic participation and full operational control of the Iska Iska project.

The Company, through its Bolivian subsidiary, Minera Tupiza, has formalized an Addendum to the Joint Venture Agreement with Minera Villegas, the Iska Iska titleholder. Pursuant to this Addendum, Minera Tupiza's participation joint venture interest is set at 99%, with Minera Villegas retaining a 1% joint venture interest. This revised structure ensures that Eloro maintains full operational control and regulatory alignment while complying with the applicable provisions of the Bolivian Mining Law. The Addendum will be filed with the relevant Bolivian mining authorities for approval in the ordinary course and in accordance with applicable regulations.

Tom Larsen, Eloro's CEO, commented: "Completion of the option payments represents a major corporate and strategic milestone for Eloro. The streamlined ownership and control structure aligns regulatory compliance with operational efficiency, eliminates economic uncertainty, and positions the Company to advance Iska Iska with maximum flexibility and clarity as development activities continue."

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of precious and base-metal properties in Bolivia, Peru and Quebec. Eloro, through its Bolivian subsidiary, Minera Tupiza SRL, has a 99% joint venture interest and a 100% economic participation interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, is available on Eloro's website and under its filings on SEDAR+. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of the Lagunas Norte Gold Mine and the La Arena Gold Mine.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/282025

FAQ

What did Eloro (ELRRF) pay to complete the Iska Iska option on January 29, 2026?

Eloro made a final cash payment of US$1,150,000 and transferred US$1,800,000 to a trust. According to the company, the trust funds will be paid to Minera Villegas within 12 months after specified mining rights are obtained.

What ownership does Eloro (ELRRF) now hold in the Iska Iska project after the option completion?

Eloro's Bolivian unit holds a 99% joint venture interest and 100% economic participation with operational control. According to the company, Minera Villegas retains a 1% joint venture interest under the Addendum.

Is the US$1.8M trust payment for Iska Iska guaranteed or conditional for ELRRF shareholders?

The US$1.8M trust transfer is conditional on Minera Villegas obtaining mining rights for two areas. According to the company, funds will be paid within 12 months after those mining rights are secured.

Does Eloro (ELRRF) need government approval after completing Iska Iska option payments?

Yes. The Addendum and revised joint venture structure will be filed with Bolivian mining authorities for approval. According to the company, filing will occur in the ordinary course under applicable regulations.

How does the Iska Iska option completion affect Eloro's operational control and development flexibility?

The deal gives Eloro full operational control and streamlined ownership, which should simplify development decisions. According to the company, the structure aligns regulatory compliance with operational efficiency for advancing Iska Iska.