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November 2020
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 2020, 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. |
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Harry Barr
Chairman & CEO |
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Option-Sale Agreement
with Puma Exploration
In 2016, 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 to
Puma Exploration.
By mutual agreement on July 31, 2020 El Niņo Ventures
Inc. and Puma Exploration Inc. ("Puma") agreed to
terminate the asset purchase agreement. Over the term of
the asset purchase agreement, ELN received approximately
C$2.1M, 1.1 million shares of Puma and 500,000 Puma
warrants.
ELN also received the value of approximately C$2.4M
worth of exploration expenditures spent by Puma during
the term of the asset purchase agreement on the project,
and all of its 32.1% interest in the Murray Brook
Project was returned to ELN.
As part of the termination of the asset purchase
agreement with Puma, a 0.67% NSR royalty that Puma's
subsidiary, Murray Brook Minerals owned, was transferred
to ELN.
Commentary
The Junior Exploration sector suffered considerably
during previous years, and appears to have reached its
bottom. Metal prices have increased considerably in
2020, resulting in a resurgence within the industry and
new capital being deployed into both exploration and
development.
Management is currently reviewing mineral projects and
are focused on acquiring North American gold projects.
ELN management and directors continue to work diligently
on acquiring financing for the Company and our projects.
Our November 2020 cash balance is approximately
C$740,000 (with no debt), other assets include the
previously mentioned 0.67% NSR Royalty on the Murray
Brook Project and 762,000 Puma Exploration shares plus
500,000 Puma Warrants, exercisable at C$0.25 until
December 2022. The Company in cooperation with our
partner Votorantim Canada continues to hold its minority
interest in the Murray Brook Polymetallic Project
(predominantly zinc) but is currently marketing its
share of the project to third parties with the objective
of a sale and using the proceeds to acquire additional
mineral projects in North America.
Zinc prices have increased considerably from its April
2020 lows in the mid-80 cent USD/lb range to the
November 18, 2020 price of USD$1.24/lb
We look forward to continuing to provide you with
updates on our go-forward plan for the balance of our
activities in 2020 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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