Chairman's Message

ELN Chairman's Message Oct 2016


 October, 2016

On behalf of the Board of Directors, I am pleased to update you on the Business Plan for El Niņo Ventures Inc., its progress to date, in 2016, and our Goals and Objectives for the balance of this year and beyond.

El Niņo Ventures Inc. is an Exploration Company, recently focused on Exploration for Zinc, Lead, Copper and Silver, in New Brunswick, Canada. The Board of Directors has agreed to Management's request to look at diversifying the Company into Precious Metals and/or other Commodities.

Harry Barr
Chairman & CEO

To that end, a decision to sell the Company's Minority Interest, in our Option/Joint Venture, with Votorantim Metals Canada Inc., on our Company's Murray Brook Polymetallic Project, was made on October 13th, 2016, when the Company signed a Letter of Intent, with PUMA Exploration, to sell, by way of Option, its Murray Brook Interest, for the following Terms & Conditions:

Terms of the Transaction and Payments to El Nino from Puma:

  1. C$50,000 non-refundable deposit to be paid 10 days following the waiver of the ROFR from El Nino. This deposit becomes binding on receipt of the waiver of the ROFR from El Nino.

  2. C$0.6 million upon closing of this transaction (no later than Nov.15, 2016)

  3. C$0.4 million payable six (6) months after the closing (no later than May.15, 2017)

  4. C$1.0 million payable twelve (12) months from closing (no later than Nov.15, 2017)

  5. C$1.0 million payable twelve (24) months from closing (no later than Nov.15, 2018)

  6. El Nino will be given the right to buy 2,000,000 warrants of Puma's ordinary shares (the warrants) expiring 3 years after the closing of the transaction based on the following exercise prices:

  1. 0 to Year 1 (Nov 15, 2017): Equal to the price of the acquisition equity financing;

  2. Year 1 to Year 2 (Nov 15, 2018): a 20% Premium to the price indicated in 1)above;

  3. Year 2 to Year 3: a 20% Premium to the price indicated in 2) above.

El Nino will receive 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% 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.

Votorantim Metals Canada Inc. will retain title to the Project, as security, until the assumption of the environmental liability has been completed by Puma and Votorantim Metals Canada Inc.'s and El Nino's liability is released by the Government of New Brunswick.

El Nino will continue to maintain its current 50% interest in the Bathurst Zinc Project - Bathurst Option Joint Venture (BOJV), also located in the Bathurst Mining Camp

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 Quality Base Metal Projects, while also looking to acquire sufficient New Assets, to form a Precious Metals Division.


The Junior Exploration sector, which suffered considerably, over the last 5 years, looks like it has reached its bottom. Thus far in 2016, Metal Prices have increased considerably and demand for Metals is expected to increase over the next few years.

A significant addition to our Management Team occurred, when our Directors appointed Trevor Richardson to the Post of President & COO of the Company. Trevor is an International Geologist and Businessman, with extensive exploration experience, in Africa and Canada and on an International Scale, in Precious Metals; more specifically Gold and Platinum Group Metals, as well as Base Metals. Registered as a Professional Natural Scientist, under the South African Council of Natural Scientific Professions, Trevor has managed many multi-million dollar projects, from Conception through to Exploration and Production. Trevor is also the Co-Founder, CEO, President and Vice President/Director of various Junior Exploration Companies, on TSXV. Trevor is a resident of North Bay, Ontario

ELN Management and Directors continue to work diligently on acquiring financing for the Company and Our Projects. We look forward to continuing to provide you with updates for the balance of 2016 and for our activities in 2017.

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

Double 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



Aug 2013