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July 5, 2018 Rockport, Canada - El Niño
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:
- $3.1
million dollars cash;
- A
laddered Net Smelter Return (NSR) up
to 1.7%; and
- 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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