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Corporate Update El Nino Ventures
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ELN News April 12 2018
 

 

  • Three new gold projects acquired in Q1 of 2018 in Newfoundland.
  • The new land position contains geology similar to that of White Metal Resource's (TSX.V WHM) new gold discovery, Gunners Cove.
  • The company is presently planning a program with follow up field work planned for the summer/fall 2018 (see Jan 9th, 2018 Press Release)
  • El Nino is now extra-provincially registered in Newfoundland.
  • This release contains an update and progress on the sale of El Nino's interest of the Murray Brook, New Brunswick Polymetallic Project to Puma Exploration.
  • The company is currently evaluating other mineral projects. Subject to the completion of the sale of the Murray Brook Project, management may also consider investments outside of the mining industry, which may require shareholder, director, and regulatory approval.

April 12, 2018 Vancouver, BC - El Niņo Ventures Inc. ("ELN" or the "Company") (TSXV: ELN; OTC Pink: ELNOF; FSE: E7Q) is pleased to update our shareholders on the three recently acquired, 100% owned, three gold projects in the Great Northern Peninsula of Newfoundland (Figure 1). The claims were staked to follow up on the new Gunner Cove gold discovery of White Metal Resources. El Nino Ventures (ELN) Chairman and CEO Harry Barr states; "The Company is pleased to update its shareholders on the gold potential of the Great Northern Peninsula of Newfoundland and the progress of the sale of our minority interest in the Murray Brooke Polymetallic Project. Management is following the exploration and development results closely from White Metal Resources and our technical team is finalizing a summer/fall 2018 exploration program in Newfoundland. Newfoundland is a treasure chest of mineral possibilities and is a mining friendly jurisdiction."

Figure 1 (Left): El Nino Venture Gold Projects -- Great Northern Peninsula, Newfoundland and Labrador
Figure 2 (Right): Claim Distribution map in the St. Anthony's area of Newfoundland and Labrador
 

El Nino's three gold projects are situated around the city of St. Anthony and northward (Figure 2 above), covering approximately 22 kilometers of favorable geology, similar to that being encountered on the Gunners Cove Project to the east and north of the company's three gold projects. The claim blocks consist of 218 claim units for approximately 18,980 hectares (approximately 46,900 Acres).

White Metal Resources recently announced (Newsfile Corp. - November 20, 2017, January 30th, 2018, and March 20th,2018.) significant amounts of highly anomalous gold assays over an area of 15 kilometers in black shale units of the Hare Bay and Goose Tickle Formations. Michael Stares, President of White Metal Resources stated in the November 30th, 2017 news release that; "Of the 156 rock samples, 99 were collected from the main area of the black shale unit. On the basis of the results from the 99 samples, the Company has expanded the gold (Au) mineralization to the north by approximately 3.75km, to the east-northeast by approximately 3.2 km, and to the south by about 1.3 km. Approximately 50% of the grab samples collected in the Gunners Cove area assayed 100 ppb Au (0.1 g/t Au) or greater, with a maximum of 2.14 g/t Au. Silver assay results are also elevated, ranging from less than 5 ppb Ag to a maximum of 9.1 g/t Ag (note: grab samples are selective by nature and are unlikely to be representative of average grades). Our recent work at the Gunners Cove Property has highlighted a large area of anomalous gold values and extended the discovery area substantially. Historically, this Property has seen very little exploration work (minor prospecting), adding to the importance of this new gold discovery. Precious metal mineralization is associated with and appears to be largely hosted by pyritic nodules and stringers accompanied by minor silicification and local brecciation and hosted by an extensive black shale unit." Management of ELN are following the exploration results of White Metal Resources (TSX. WHM), Benton Resources (TSX.V BEX), and Metals Creek Resources (TSX.V MEK) and in this newly discovered Newfoundland gold district. ELN's technical team is currently completing a detailed exploration plan for its Newfoundland projects and further details will be forthcoming.

Sale of Murray Brook Interest

ELN signed an option to sell agreement regarding the sale of its minority interest on the Murray Brook Polymetallic Project in New Brunswick (News Release: Oct 13th, 2016) with Puma Explorations.

The terms of the sale agreement are:

  1. $3.1 million dollars cash;
  2. A laddered Net Smelter Return (NSR) up to 1.7%; and
  3. 2 million share purchase warrants of Puma Exploration.

Recent revisions of the contract (News Release: Nov 6th, 2017) with regard to the Puma Exploration deal has the second payment from Puma of $1,500,000 due for May 10th, 2018.

The 3rd and final payment of an additional 1 million (total $3.1 million) is due by April 30th, 2019.

If production is achieved on the projects the life of the project, the life of the project NSR will be paid as follows:

     1) The NSR will start at 0.25% at a zinc price of US$1.04/lb and will increase in increments of 0.25%, to a maximum of 1.75% above US$1.50/lb Zinc.
     2) This NSR, which is in relation to approximately 32% of the production from the Murray Brook Property, and 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.
      3) On April 10th, 2018 the price of Zinc was $1.47/lb USD according to Kitco.
 

The terms of the warrant are as follows: 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; and
      3) Year 2 to Year 3: a 20% premium to the price indicated in 2) above.
 

In the event Puma does not complete it option to acquire ELN's interest ELN will receive its entire interest in the Murray Brook project back.

Update on Puma Exploration

On March 2nd, 2018, Puma Exploration announced that it had signed a Strategic Development and Exploration Alliance with Trevali Mining Corporation (TV). In this release, Puma stated: "Under the terms of the LOI, Trevali will provide up to 7.5 million dollars funding to finalize the acquisition of the Murray Brook Deposit by Puma within the timeframe negotiated with Votorantim Metals Canada Inc. ("VMC") and El Nino Ventures Inc. ("ELN") and to repay the $2.0 million loan received by Puma (see news release February 26th, 2018). Following the acquisition by Puma of the VMC and ELN interest, the Murray Brook Deposit (ML252) shall be owned by TV and PUMA on a 75% and 25% basis respectively." Management of ELN will keep its shareholders up to date on the progress of this transaction. Further announcements will be forthcoming.

Stock Option Grant

In addition, the Company announces that it has granted 150,000 incentive stock options to a consultant of the Company at an exercise price of $0.05 per share for a period of five (5) years from the date of grant in accordance with the Company's Stock Option Plan. The Stock Options granted will be subject to vesting restrictions and will vest over a period of one (1) year from the date of grant. The options are subject to acceptance by the TSX Venture Exchange and will be subject to regulatory hold periods in accordance with applicable Canadian Securities Laws.

About El Nino Ventures

El Nino Ventures Inc. (ELN) has in the past years been an international base metals exploration company with its focus being on the Murray Brook Project in the Bathurst region of New Brunswick, Canada. The Company also has an Aggressive Mineral Acquisition Program Underway with a focus on gold and base metal projects that are a mix of grass roots, brownfields and advanced stage projects. The Company plans to use the Prospector Generator Model which reduces risk, share dilution and increases discovery potential.
The company is currently evaluating other mineral projects. Subject to the completion of the sale of the Murray Brook Project, management may also consider investments outside of the mining industry, which may require shareholder, director, and regulatory approval.

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Qualified Person

The contents contained herein that relate to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Carey Galeschuk, P.Geo, a consulting geoscientist for El Nino Ventures. Mr. Galeschuk is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release.

For more information on the Company please go to http://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.

Cautionary Note Regarding Forward Looking Statements: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward looking statements include statements in which the Company uses words such as "continue", "efforts", "expect", "believe", "anticipate", "confident", "intend", "strategy", "plan", "will", "estimate", "project", "goal", "target", "prospects", "optimistic" or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company's ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward looking statements.
 



 

 
 

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