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Fall 2018
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 2018, 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 in New Brunswick,
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. 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. |
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Harry Barr
Chairman & CEO |
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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. To
date the Company has received a cash and share value of $650,000
(which includes the non-refundable deposit).
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. All other areas of the contract in terms of ELN's payment
and royalty remain the same.
The final payment due to El Niņo of one (1) million dollars will
become due on or beforeMay 10, 2019. Subject to this payment being
made, El Niņo will have received a total value of $3.1 million
dollars 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/Trevali does not make the final payment to
ELN in regards to the asset purchase agreement, El Nino 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. Management plans to use
these funds for searching and acquiring of high quality new projects
and potentially diversifying the company.
COMMENTARY
The Junior Exploration sector, which suffered considerably, over the
last eight (8) 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 with a
$1 million receivable by May 10, 2019. We look forward to continuing
to provide you with updates on our go-forward plan for the balance
of our activities in 2018/ 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.ElNiņoVentures.com
Double Opt-In, on the website, to receive continued updates
on ELN.
Yours sincerely,
"Harry Barr'"
Harry Barr
Chairman & CEO
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