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October 13, 2016 Vancouver, BC - El Niņo
Ventures Inc. ("ELN" or the "Company") (TSXV:
ELN; OTC Pink: ELNOF; FSE: E7Q) EL
Nino Ventures would like to announce
that it has executed an asset sale
agreement with Puma Exploration (PUM:TSX-V)
to relinquish its 32.1% interest in the
Murray Brook Zn-Pb-Cu-Ag Volcanogenic
Massive Sulphide ("VMS") deposit located
in the Bathurst Mining Camp ("BMC") of
northern New Brunswick. The Murray Brook
property consists of Mining Lease 252
and contiguous Mineral Claim Block 4925
(245 claims) located 11 km west of the
producing Caribou Mine, which is owned
and operated by Trevali Mining
Corporation. The aforementioned
transactions are expected to close on or
about November 15th, 2016. El Nino's
joint venture partner Votorantim Metals
Canada Inc. on the Murray Brook Project
has also optioned their total interest
of the Murray Brook Project to Puma.
Harry Barr, Chairman and CEO comments;
"We are pleased with the terms and
conditions of our sale of the Murray
Brook asset. Given the fact that our
company had a minority position in the
project, we believe that the proceeds
from the sale will allow the company to
acquire new projects and focus on our
existing assets and allow management the
funding needed to acquire key assets in
the precious metals space."
Terms of the Transaction and Payments
to El Nino from Puma
-
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.
-
C$0.6 million upon closing of this
transaction (no later than Nov.15th,
2016)
-
C$0.4 million payable six (6) months
after the closing (no later than
May.15th, 2017)
-
C$1.0 million payable twelve (12)
months from closing (no later than
Nov.15th, 2017)
-
C$1.0 million payable twelve (24)
months from closing (no later than
Nov.15th, 2018)
-
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 interest in the Bathurst Zinc
Project - Bathurst Option Joint
Venture (BOJV) also located in the
Bathurst Mining Camp.
For more information on the Company
please go to
www.elninoventures.com
On Behalf of the Board of Directors
"Harry Barr"
Harry Barr
Chairman & CEO
El Nino Ventures Inc.
Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release. |
