Oriel Resources indicated in February 2005 that it was considering the most appropriate structure for its gold related activities. In July 2006, the Company subsequently completed the transfer and sale of its gold related assets into Lero Gold Corporation (formerly ELE Capital Corporation). Lero resumed trading on TSX Venture Exchange (TSX-V) on Thursday July 27, 2006 under the trading symbol “LER”.

 

The transaction represented a Reverse Takeover (as such term is defined in the TSX-V Corporate Finance Manual) of ELE Captial Corporation. Oriel currently holds 63.1% of the issued capital of Lero.

 

Prior to the completion of the transaction, the shares in ELE have traded at C$0.60 valuing the Oriel investment at C$18.0m or US$15.66m.

 

Oriel’s shareholding in Lero is subject to TSX-V escrow conditions.

 

Executive Chairman of Oriel, Dr Sergey V. Kurzin said:

“I am pleased that the completion of this sale concludes our stated objective of divesting the Company of its non-core assets in order to provide additional focus on our chrome and nickel projects.”

 

“Oriel will continue to influence the current drilling program and benefit from the gold related assets through its investment in Lero, whilst simultaneously being able to focus its energies and resources on the aggressive development of its advanced ferroalloy projects in Kazakhstan.”

 

Lero Gold Corporation’s Board of Directors includes:

Nicholas Clarke – CEO and President

Dr Sergey V Kurzin – Executive Director

David Swan – Chief Financial Officer and Company Secretary

Darryl Yea – Non-Executive Chairman

Marc Prefontaine – Non-Executive Chairman

Mar Corra – Non-Executive Chairman

 

Further information can be found at www.lerogold.com