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May 2017
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
2017, 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.
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Harry Barr
Chairman & CEO |
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The company made a decision to sell the Company's Minority Interest,
in our Option/Joint Venture, with Votorantim Metals Canada Inc., on
our Murray Brook Polymetallic Project:
By mutual agreement on May 4, 2017, El Nino Ventures Inc. and Puma
Exploration Inc. have agreed to modify the original closing terms of
their asset purchase agreement. Thus, the initial payment has been
modified to a cash payment of $300,000, which has already been
delivered to El Nino, and the issuance of five million Puma shares
at the deemed value of seven cents.
The second payment of $400,000, is postponed to April 30, 2018, and
has been increased to $500,000, and will be added to the existing
third payment of $1-million which is due for April 30, 2018, for a
total amount of $1.5-million (total 3million dollars). However, in
the event that Puma raises $1-million during the first six months
from the signing of the modified asset purchase agreement (up to
Oct. 30, 2017), then the amount and the schedule of second payment
will remain unchanged, and Puma will pay $400,000 on or before Oct.
30, 2017.
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. In
relation to PUMA not meeting its asset purchase agreement terms, El
Nino will retain its interest in the Murray Brook Project.
Except as specifically modified pursuant to the present release, no
other changes or modifications to the asset purchase agreement are
intended or implied or have otherwise been agreed between the
parties, and in all other respects the asset purchase agreement is
hereby specifically ratified, restated and confirmed by the parties.
The present modifications have to be reviewed by the usual
regulatory agencies and the closing is expected shortly.
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.
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
COMMENTARY
The Junior Exploration sector, which suffered considerably, over the
last 5 years, looks like it has reached its bottom, thus far in
2017, Metal Prices have increased considerably and demand for Metals
is expected to increase over the next few years.
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
our activities in 2017.
For further information on your Company, please visit:
www.ElNiņoVentures.com
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
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Aug
2013
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