Chairman's Message

ELN Chairman's Message Summer 2019

Summer 2019

Dear Shareholders: 

On behalf of the Board of Directors, I am pleased to update you on the Business Plan for El Niņo Ventures, its progress to date, in 2019, and our Goals and Objectives for the balance of this year and beyond.

El Niņo Ventures Inc. is an Exploration Company, who for the last 9 years has focused on Exploration for Zinc, Lead, Copper and Silver, and gold on the East Coast of Canada. The Board of Directors has recently agreed to Management's request to look at diversifying the Company into other areas within the resource sector and the possibility of new acquisitions beyond the resource sector.

Harry Barr
Chairman & CEO


To that end, the Company plans to add to its director base and form an advisory committee with individuals that have diversified backgrounds in multiple industries including mining, oil and gas, alternative energy, diversified industrial projects, real estate, technology, alternative medicine and communications.

The Company decided to sell, by way of option, the Company's Minority Interest, in our Joint Venture, with Votorantim Metals Canada Inc., more specifically our interest in the Murray Brook Polymetallic Project.

By mutual agreement on May 10, 2017 El Niņo Ventures Inc. and Puma Exploration Inc. ("Puma") agreed to modify the original payment terms of their asset purchase agreement. Thus, the initial payment to El Niņo was modified to a cash payment of an aggregate of $300,000, which includes a non-refundable deposit, the issuance of five (5) million Puma shares at the deemed value of seven cents, and the issuance of two (2) million share purchase warrants. The warrants issued are exercisable until May 4, 2020 at a price of $0.07 in year one, $0.08 in year two and $0.10 in year three. In the spring of 2018 Puma assigned part of its interest to Trevali Mining Corporation and Trevali, Puma and El Nino Ventures modified its agreement to allow Trevali to earn 75% of the Murry Brook Project.

In April 2019 the company received notice from Puma that Trevali had exited the initial agreement.

Puma and the company agreed to an additional amendment whereby Puma would issue an additional one million of its shares to the company and the final payment of one (1) million dollars will become due on or before June 30, 2019.

Subject to this payment being made, El Niņo will have received a total value of $3.1 million dollars plus the one million share payment in June 2019 for the sale of its 32.14% interest in the Murray Brook Project.
El Niņo will also receive a laddered Net Smelter Return on Production (NSR), starting at 0.50%, 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 32.14% 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. As of September 14th the price of zinc was $1.05 per pound.

In the event that PUMA does not make the final payment to ELN in regards to the asset purchase agreement, El Nino will receive its interest back in good standing and will retain its full interest in the Murray Brook Project.

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 high quality new projects and also explore options for diversifying the company.

In the first quarter of 2018 ELN announced the acquisition of three gold projects in the Great Northern Peninsula of Newfoundland (Figure 1). The claims were staked to follow up on the new Gunner Cove gold discovery of White Metal Resources.

El Nino's three gold projects were situated around the city of St. Anthony and northward (Figure 2 above), covering approximately 22 kilometers of favorable geology, similar to that being encountered on the Gunners Cove Project to the east and north of the company's three gold projects.

In the Summer/Fall of 2018, exploration programs were launched to investigate all three of the projects. Based on the results achieved at the end of the exploration, management decided to reduce its footprint in Newfoundland from three projects to one and retain the NP Gold Project.

Management of ELN are following the exploration results of White Metal Resources, Benton Resources, and Metals Creek Resources and in this newly discovered Newfoundland gold district.

ELN's technical team is currently considering a detailed exploration plan for its Newfoundland project and further details will be forthcoming.

COMMENTARY

The Junior Exploration sector, which suffered considerably, over the last nine (9) years, appears to have reached its bottom. Metal Prices have increased considerably and although both metals prices and junior companies share prices have been volatile, a vast number of savvy investors, industry analysts and mine investment companies feel demand for metals is expected to increase over the next few years due to world wide demand, and increased commerce on an international scale.

ELN Management and Directors continue to work diligently on acquiring financing for the Company and our Projects. Our September cash balance is approximately $1.5 million with no debt and a $1 million receivable by June 30, 2019. We look forward to continuing to provide you with updates on our go-forward plan for the balance of our activities in 2019 and beyond. On behalf of the Board of Directors, we thank you for your ongoing support.

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

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On behalf of the Board of Directors,

Yours sincerely,

"Harry Barr'"

Harry Barr
Chairman & CEO

 

Aug 2013