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Shareholder and Investor Update
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ELN News July 5 2018
 

July 5, 2018 Rockport, Canada - El Niņo Ventures Inc. ("ELN" or the "Company") (TSXV: ELN; OTC Pink: ELNOF; FSE: E7)

Management of El Nino Ventures would like to announce that Mr. Trevor Richardson has stepped down from the Company as President and COO. Effective today, Mr. Harry Barr, Chairman and CEO will take on all of Mr. Richardson's duties. On behalf of the management and directors we would like to thank Mr. Richardson for his time spent with El Nino and we wish him well with his future endeavors.

Mr. Harry Barr, Chairman and CEO, stated: "El Nino's management team is working on a plan which would include innovative ways to move the Company forward. To that end, the Company plans to add to its director base and form an advisory committee with individuals that have diversified backgrounds in multiple industries including mining, oil and gas, alternative energy, diversified industrial projects, real estate, technology, alternative medicine and communications.

The Company is currently evaluating additional investments and projects within the mining industry and management may also consider investments outside of the mining industry, which may or may not require shareholder, director, and regulatory approval."

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Shareholder/Investor Update - El Nino Ventures Inc.

On May 1st, 2018 ELN gave it shareholders and interested investors and update on the Murray Brook Project.

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 Exploration.

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 now due by May 10th, 2019.

If production is achieved on the project the royalty will remain for the life of the project. The 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 30th, 2018 the price of Zinc was $1.41/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.

In the first quarter of 2018 ELN acquired 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.

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). The company is presently planning a program on its three gold projects in Newfoundland.

The claims were staked to follow up on the new Gunner Cove gold discovery of White Metal Resources.

ELN is currently seeking option/joint venture partners on one or more of the above mentioned projects and the Company's technical team are working on a phase one exploration program for the 3 Newfoundland Gold Projects.

Stock Option Grant

In addition, the Company announces that it has granted 1,500,000 incentive stock options to consultants of the Company at an exercise price of $0.10 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, acceptance by the TSX Venture Exchange and will be subject to regulatory hold periods in accordance with applicable Canadian Securities Laws.

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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