EL Nino Receives Second Payment for the Acquisition of Murray Brook Project from Puma Exploration for $1.5 Million Dollars 1.
1
EL Nino Receives
Second Payment
for the Acquisition of Murray Brook Project
from
Puma Exploration
for $1.5 Million Dollars
1.
El Nino Ventures Inc. (
ELN
-
TSX) signed a
n
option
agreement
regarding the
sale of its
minority interest i
n the Murray Brook Polymetallic Project in New Brunswick (News
Release:
Oct 13th
, 2016
) with Puma Exploration (“Puma”)
.
2.
Puma
announced
the signing of the definitive Option Agreement with Trevali Mining
Corporation (TV
-
TSX)
to allow Puma to Purchase the Murray Brook Project
along with
other considerations
.
3.
On April 30,2018, Puma
made its second payment of $1.5M
to ELN
towards its buyout
o
ption.
4.
The terms of the sale agreement
with Puma
are: $3.1 million dollars cash;
A laddered Net
Smelter Return (NSR) up to 1.7%
of ELN’s minority interest in the royalty
; and 2 million
share purchase warrants of Puma Exploration.
The third and final payme
nt of $1 million is
due on or before May 10
th
, 2019.
5.
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.
6.
The company is currently
evaluating
other
mineral projects
.
M
anagement may
also
consider
investments
outside of the mining industry,
which may require shareholder
,
director
, and regulatory approval
.
7.
Three new gold projects
were
acquired in Q1 of 2018 in Newfoundland.
8.
The new land position contains geology similar
to that of White Metal Resource’s (TSX.V
WHM) new gold discovery, Gunners Cove.
9.
The company is presently planning a program with follow up field work
.
10.
El Nino is now provincially registered in Newfoundland
t
o conduct mineral exploration
.
May 1
st
, 201
8
Rockport
, Canada
–
El Nino Ventures Inc (TSX.V: ELN; OTCQB: ELNOF; FSE: E7Q.F)
is
pleased to
update our shareholders on the
acquisition of
the
Murray Brook Project by Puma
Exploration Inc. (“Puma”).
Puma
announced the signing of the definitive Option Agreement with
Trevali Mining Corporation (TV
-
TSX) setting the terms of the development and the exploration of
the Murray Brook Deposit (M.L.252) and the signing of the Strategic Alliance Agreement (‘’SAA’’)
s
etting the terms of the exploration of combined mining properties in the Restigouche
–
Armstrong
Belt region of New Brunswick.
On
April 30
,2018, Puma announced they’ve received an amount of
$1.5M
from Trevali
, which was used to make the payment of $1.5M due
to ELN.
El Nino Ventures (ELN) Chairman and CEO Harry Barr
states;
“
The Company is pleased to update
its shareholders on the acquisition of the Murray Br
ook Project. We are appreciative
with Puma’s
efforts in
arranging the financing as well as meeting
the
payment requirements to ELN.
The
payment of $1.5M will be added to ELN’s treasury and will be used for new acquisitions for the
company and or working capital.”
2
In the first quarter of 2018 ELN acquired
t
hree
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, Newfoundla
nd and Labrador
Figure 2 (Right): Claim Distribution map in the St. Anthony’s area of Newfoundland and Labrador
E
l 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. ELN is currently
seeking
option/joint venture
partners on
one or more of
the
above
-
mentioned
projects and the
company’s
technical team continues to plan for
a phase one
exploration program on the projects.
3
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 13
th
, 2016
) with Puma
Explorations
.
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 6
th
, 2017
) with regard to the Puma
Exploration deal has the second payment from Puma of $1,500,000 due for
May 10th, 2018
.
The 3
rd
and final payment of an additional 1 million (total
$
3.1 million) is due by April 30
th
,
2019.
If production is achieved on the projects the life of the project
, the life of the project 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 Z
i
n
c.
2)
This NSR
, which
is
in relation to
approximately
32% of the production from the Murray
Brook Property,
and
incl
udes 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 30
th
, 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
s
option to acquire ELN
’
s interest ELN will receive its
entire interest in the Murray Brook project back.
4
Stock Option Grant
In addition, the Company announces that it has granted 300,000 incentive stock options to a
consultant
of the Company at an exercise price of $0.07 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 Ventu
re Exchange and will be subject
to regulatory hold periods in accordance with applicable Canadian Securities Laws.
A
bout El Nino Ventures
El Nino Ventures Inc. (ELN)
has in the past years been
an international base metals exploration
company
with its focus
being on the Murray Brook Project in the Bathurst region of
New
Brunswick, Canada.
The Company also has an
A
ggressive
Mineral
Acquisition Program Underway
with a focus on gold and base metal projects that are
a
m
ix 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.
The
C
ompany is currently
evaluating
other
mineral projects.
M
anagement may also consider
investments out
side of the mining industry, which may require shareholder, director, and
regulatory approval.
O
pt
-
In List
If you have not done so already, we encourage you to sign up on our website
(
www.elninoventures.com
) to receive our updated news.
Qualified Person
The contents contained herein that relate to Exploration Results or Mineral Resources is based on
information compiled, reviewed or prepared by Carey Galeschuk
, P.Geo
, a consulting geoscientist
for
El Nino V
entures
.
Mr. Galeschuk is the Qualified Person as defined by National Instrument 43
-
101 and has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
“
Harry Barr”
Harry G. Barr
Chairman and CEO
ADDITIONAL
INFORMATION:
Should you have additional inquiries, please contact
Paul Poggione
,
Corporate Development, Tel: 1
-
613
-
659
-
2773, email:
5
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Statements: This release contains forward
-
looking
statements that involve risks and
uncertainties. These statements may differ
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-
looki
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”, “confident”, “intend”, “strategy”,
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arget”, “prospects”, “optimistic” or
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depending on a variety of important factors, including,
among others, the Company’s ability
and continuation of efforts to timely
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may be discussed in the documents
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(www.sedar.com), including the most recent reports that
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-
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expectations or estimates or to release publicly any
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-
looking statements to reflect events or circumstances
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