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El Corporation www.elcorporation.com.au

El Corporation (ASX: EIM) is undergoing a transition to the resources sector with the acquisition of the Birthday Mine, a 54 hectare gold mining operation located about 42 kilometres north of Bullfinch in Western Australia.

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EL Corporation to move forward with gold mine acquisition at lower cost

North Sydney-based El Corporation (ASX: EIM) has entered a sale and purchase agreement to acquire the Birthday Mine in Western Australia for a total consideration less than what was originally agreed to.

The company can now acquire the mine for a total consideration of A$1.7 million, $500,000 less than the initial agreed price.

The transaction now comprises an increased cash payment of $1.25 million, in place of the original $650,000, and a reduction in the issue of shares to 9 million, instead of the original 22 million, at $0.05 each.

The Birthday Mine is a 54 hectare gold mining operation located about 42 kilometres north of Bullfinch in Western Australia.

Around 12,000 tonnes of ore has been extracted from the mine between 2000 and the present, producing 160 kilograms of gold including a modest 2010 profit of about $450,000.

El Corporation’s plan is to secure additional tenements surrounding the Birthday Mine, as well as consider potential acquisitions outside of Australia.


Atlas Capital support

Atlas Capital has agreed to continue to fund El Corporation’s operations.

The company has affirmed it has sufficient cash to fund its ongoing activities.


Change of activities

El Corporation is currently undergoing a change of activities.

The company intends to wind down its current activities of import, design, sales, service and support of computer and communication systems and equipment.

If the acquisition of the Birthday Mine is approved by shareholders the company will issue a prospectus and be suspended from trading while it re-complies with chapters 1 and 2 of the ASX Listing Rules.

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