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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
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Harry Barr
Chairman & CEO |
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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
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
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