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June
20, 2016 Vancouver, BC ‐ El Niño
Ventures Inc. ("ELN" or the "Company") (TSX.V:
ELN OTC Pink: ELNOF FRANKFURT: E7Q)
announces that it has closed its non
brokered private placement raising gross
proceeds of $453,955.
The Company issued 22,697,750 units
(Units) at a price of $0.02 per Unit
pursuant to a discretionary waiver
obtained from the TSX Venture Exchange
on April 21, 2016 from the $0.05 per
share minimum pricing requirements. Each
Unit consists of one common share and
one non-transferable share purchase
warrant (a "Warrant"). Each Warrant
entitles the holder to purchase one
additional common share of the Company
at a price of $0.05 per share for a
period of 24 months from closing.
Mr. Harry Barr, Chairman, CEO and a
director of the Company purchased
10,500,000 Units from the Company at a
price of $0.02 per Unit, pursuant to the
private placement.
Prior to the closing of the private
placement, Mr. Barr held directly and
indirectly 6,366,854 shares and 550,000
options to purchase an additional
550,000 common shares of the Company,
representing approximately 18.36% of the
Company's issued and outstanding shares
on a post-conversion beneficial
ownership basis. As a result of Mr.
Barr's acquisition pursuant to the
private placement, Mr. Barr now holds
16,866,854 common shares and 11,050,000
warrants and options of the Company,
representing approximately 39.37% of the
Company's current issued and outstanding
shares of the Company on a
post-conversion beneficial ownership
basis
Finder's fees totaling 35,000 shares,
77,000 broker warrants and $840 cash
were paid in connection with the private
placement.
The shares and warrants issued with
respect to the private placement are
subject to a four‐month and a day hold
period expiring on October 21, 2016 in
accordance with Securities Laws. The
shares issued are also subject to
voluntary pooling restrictions.
Completion of the private placement and
any finder's fees payable are subject to
regulatory approvals.
Proceeds from the private placement in
the amount of up to $279,000 will be
used for further exploration and
development on the Company's Murry Brook
polymetallic project in New Brunswick.
Up to $66,000 will be used to settle
related party debt and up to $108,955
will be used for general working
capital.
Further to the Company's news release
dated April 21, 2016 the Company plans
to complete phase two of its debt
restructure. More specifically, the
Company has agreed to settle its debt
obligations to existing creditors ($0.50
on the $1.00) in the amount of up to
$80,054 by issuing up to 1,601,080
common shares at $0.05 per share. After
completion of the shares for debt
transaction the Company will have
settled all outstanding debts.
On Behalf of the Board of Directors
"Harry Barr"
Harry Barr
Chairman & CEO
El Nino Ventures Inc.
Further Information: Tel: +1 604 685
1870 Fax: +1 604 685 8045
Email: info@elninoventures.com or visit www.elninoventures.com
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. Note: 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. |
