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Winter 2018
Dear Shareholders:
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.
The Company made a decision to sell, by way of option, the Company's
Minority Interest, in our Option/Joint Venture, with Votorantim
Metals Canada Inc., on our Murray Brook Polymetallic Project: |
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Harry Barr
Chairman & CEO |
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By mutual agreement on May 10, 2017, El Niņo Ventures Inc. and Puma
Exploration Inc. ("Puma") have 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).
The second payment of
$400,000, is postponed to November 10, 2017, subject to Puma raising
an additional one (1) million dollars within the first six (6)
months. In the event Puma does not make the November 10, 2017
payment, El Niņo will receive an additional $100,000, for a total of
$500,000 which will become due on May 10, 2018 with the existing
third payment of one (1) million dollars, for a total payment amount
of $1.5 million dollars due May 10, 2018.
The final payment due to
El Niņo of one (1) million dollars will become due on May 10, 2019.
Subject to the amount of the second payment, El Niņo will have
received a total value of $3.05-$3.15 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.
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 the event that PUMA does not meet its asset purchase
agreement terms, El Nino will retain its 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 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 Niņo and its joint venture partner Glencore, have
decided to terminate their 50/50 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 six (6) years, looks like it may have 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 and 2018. 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.
On behalf of the Board of Directors,
Yours sincerely,
"Harry Barr'"
Harry Barr
Chairman & CEO
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