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El Nino Ventures Inc and Puma Exploration Inc. Amend the Terms of the Murray Brook Property Agreement
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ELN News December 24 2019
 

Rockport, Ontario December 23, 2019 - El Nino Ventures Inc. (the "Company" or "ELN") announces that by mutual agreement, Puma Exploration Inc. ("Puma") and ELN have agreed to modify the terms of the amended and restated Asset Purchase Agreement signed October 5, 2016, as amended thereafter. Pursuant to the fifth amending agreement signed by Puma & ELN, Puma now has until June 30, 2020 to proceed with the final $1M cash consideration.

Pursuant to the amending agreement, Puma will issue 1M shares to El Nino at a deemed price of $0.12 and issue 500,000 warrants, valid for 3 years, at an exercise price of $0.25 in consideration for the total additional cash fees stipulated in the July 9th, 2019 amendment. The total, $120,000, was payable even if Puma paid out the $1-million final payment before June 30th, 2020.

The amending agreement is subject to the approval of the TSX Venture Exchange.

In the event that Puma does not proceed with the final $1,000,000 payment before June 30, 2020, a 0.67% royalty (NSR) on the Murray Brook Project will be granted to ELN under the same terms as the existing royalty in the Purchase Agreement or, at the option of Puma and subject to prior approval of the TSX Venture Exchange, Puma will issue to ELN 1.5 million shares of Puma.

ELN Chairman and CEO, Harry Barr stated, "We are pleased with the amendment of the terms between the parties. Given the fact that Puma was able to extend its option with Votorantim Metals Canada Inc. on July 3, 2019 to the end of June 2020 for its majority interest in the Murray Brook Project, ELN's management team also decided to extend its option. Puma's management team have been extremely diligent in regards to doing their best efforts to complete this Asset Purchase Agreement. We look forward to a successful conclusion."

If Puma does not satisfy the conditions set forth in the Amended and Restated Asset Purchase Agreement, then ELN shall retain its 32.1% interest in the Murray Brook Project as well, it will receive the geological information, reports, metallurgical tests and the surface copper zone drill sampling which to date represents about $2.4M in exploration work completed on the Murray Brook Project since ELN entered into the original sale agreement with Puma.

The Company continues to investigate new innovative ways to move ELN's business plan forward, 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.

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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