Chairman's Message

ELN Chairman's Message May 2017

 

May 2017

On behalf of the Board of Directors, I am pleased to update you on the Business Plan for El Niņo Ventures Inc., its progress to date, in 2017, and our Goals and Objectives for the balance of this year and beyond.

El Niņo Ventures Inc. is an Exploration Company, recently focused on Exploration for Zinc, Lead, Copper and Silver, in New Brunswick, Canada. The Board of Directors has agreed to Management's request to look at diversifying the Company into Precious Metals and/or other Commodities.
 

Harry Barr
Chairman & CEO

The company made a decision to sell the Company's Minority Interest, in our Option/Joint Venture, with Votorantim Metals Canada Inc., on our Murray Brook Polymetallic Project:

By mutual agreement on May 4, 2017, El Nino Ventures Inc. and Puma Exploration Inc. have agreed to modify the original closing terms of their asset purchase agreement. Thus, the initial payment has been modified to a cash payment of $300,000, which has already been delivered to El Nino, and the issuance of five million Puma shares at the deemed value of seven cents.

The second payment of $400,000, is postponed to April 30, 2018, and has been increased to $500,000, and will be added to the existing third payment of $1-million which is due for April 30, 2018, for a total amount of $1.5-million (total 3million dollars). However, in the event that Puma raises $1-million during the first six months from the signing of the modified asset purchase agreement (up to Oct. 30, 2017), then the amount and the schedule of second payment will remain unchanged, and Puma will pay $400,000 on or before Oct. 30, 2017.

El Nino will receive a laddered Net Smelter Return on Production (NSR), starting at 0.25%, at a Zinc price of US$1.04/lb. and increasing, in increments of 0.25%, to a maximum of 1.75% above US$1.50/lb. Zn, in relation to 32% of the production from the Murray Brook Property, which includes the Mining Lease and the Camel Back Claims, for the life of the Murray Brook Deposit and any new discovery made on the total project.

Votorantim Metals Canada Inc. will retain title to the Project, as security, until the assumption of the environmental liability has been completed by Puma and Votorantim Metals Canada Inc.'s and El Nino's liability is released by the Government of New Brunswick. In relation to PUMA not meeting its asset purchase agreement terms, El Nino will retain its interest in the Murray Brook Project.

Except as specifically modified pursuant to the present release, no other changes or modifications to the asset purchase agreement are intended or implied or have otherwise been agreed between the parties, and in all other respects the asset purchase agreement is hereby specifically ratified, restated and confirmed by the parties. The present modifications have to be reviewed by the usual regulatory agencies and the closing is expected shortly.

The funds from the sale of ELN's Murray Brook interest will amount to a Non-Dilutive Financing for the Company and Management plans to use these funds to Acquire New Projects and will continue to search for Quality Base Metal Projects, while also looking to acquire sufficient New Assets, to form a Precious Metals Division.

El Nino will continue to maintain its current 50% interest in the Bathurst Zinc Project - Bathurst Option Joint Venture (BOJV), also located in the Bathurst Mining Camp

COMMENTARY

The Junior Exploration sector, which suffered considerably, over the last 5 years, looks like it has reached its bottom, thus far in 2017, Metal Prices have increased considerably and demand for Metals is expected to increase over the next few years.

ELN Management and Directors continue to work diligently on acquiring financing for the Company and Our Projects. We look forward to continuing to provide you with updates for the balance of our activities in 2017.

For further information on your Company, please visit: www.ElNiņoVentures.com

Double Opt-In, on the website, to receive continued updates on ELN.

On behalf of the Board of Directors,

Yours sincerely,

"Harry Barr'"

Harry Barr
Chairman & CEO

 

 

Aug 2013