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August
4, 2020 Rockport, ON, Canada -- El Nino
Ventures Inc. (TSXV: ELN; OTCQB: ELNOF;
FSE: E7Q.F) and Puma Exploration
Inc., PUMA-TSXV ("Puma'') have
terminated the amended and restated
asset purchase agreement signed on Oct.
5, 2016, as amended thereafter. Pursuant
to the last amendment signed by El Nino
and Puma, Puma had until July 31, 2020,
to proceed with the final $1-million
cash consideration or to agree on an
alternative agreement to deal with the
acquisition of the Project. Outside of
the final cash payment to ELN, Puma has
fulfilled its obligations during the
execution of the purchase agreement and
the parties will execute the
requirements for termination.
In accordance with the terms of the
Purchase Agreement, Puma hereby
specifically recognizes that it shall
transfer to ELN, at the latest on August
31,2020 and for no additional
consideration, its 0.67 % NSR
("production royalty") on 100% of the
Murray Brook Project and the Murray
Brook East Property which are currently
held by its wholly-owned subsidiary,
Murray Brook Minerals Inc.
As a reminder, ELN also has an existing
NSR for the life of the project 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 Murray Brook
East Property, for the life of the
Murray Brook deposit and any new
discovery made on the total project.
3) On August 4, 2020 the price of Zinc
was $1.04/lb USD according to Kitco.
In addition to the above, as a result
of the termination Puma will deliver to
ELN all geological information, reports,
metallurgical tests and the surface
copper zone drill sampling which
represents about $2.4M in exploration
work completed on the Murray Brook
Project since ELN entered into the
original sale agreement with Puma.
Stock Option Grant
The Company announces that it has
granted 1,500,000 incentive stock
options to directors, officers and
consultants of the Company at an
exercise price of $0.08 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.
About El Nino Ventures
El Nino Ventures Inc. (ELN) owns a
32.1% interest in the Murray Brook
Polymetallic Project in the Bathurst
region of New Brunswick, Canada. In 2013
ELN and its joint venture partner
Votorantim Metals Canada Inc. ("Votorantim")
completed a Preliminary Economic
Assessment on the Project. Since that
time, approximately $2.4M of additional
exploration expenditures were completed
by third parties. ELN also has two NSR
royalties on the Murray Brook Project.
The Company continues to investigate new
acquisitions for ELN, and plans to use
the Prospector Generator model which
reduces risk, share dilution and
increases discovery potential.
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. 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. |
