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Fall 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 (+500,000 warrants),
and a 0.67% NSR Royalty Interest in the entire Murray
Brook Project.
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.
ELN had an existing NSR Royalty Interest in the project
which is 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 32.1% 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 August 6,
2020, the price of zinc was US$1.08 per pound.
COMMENTARY
The Junior Exploration sector suffered considerably
during previous years, appears to have reached its
bottom. Metal prices have increased considerably,
resulting in a resurgence within the industry.
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 August 2020 cash balance is approximately C$650,000
(with no debt), other assets include the two previously
mentioned NSR Royalties and 1.1M Puma Exploration shares
plus 500,000 Puma Warrants, exercisable at C$0.25 until
December 2022. 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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