Nino Ventures T hree new gold projects acquired in Q1 of 2018 in Newfoundland. The new land position contains geology similar to that of White Metal Resource’s (TSX.V WHM) new gold discovery, Gunners Cove . The company is presently planning a
1
Corporate
Update E
l
Nino Ventures
T
hree new gold projects acquired in Q1 of 2018
in Newfoundland.
The new land position contains geology similar to that of White Metal Resource’s
(TSX.V
WHM)
new gold
discovery, Gunners Cove
.
The company is presently planning a
program
with follow up
field
work planned for
the
s
ummer/fall
2018
(see
Jan 9
th
, 2018
Press Release)
El Nino is now extra
-
provincially registered in Newfoundland.
This release contains an u
pdate
and progress
on
the
s
ale of
El Nino’s interest of the
Murray Brook
, New Brunswick Polymetallic Project
to Puma Exploration
.
The company is currently
evaluating
other
mineral projects
.
S
ubject to the completion of
the sale of
the Murray
Brook Project, management may
also
consider
investments
outside
of the mining industry,
which may require shareholder
,
director
, and regulatory approval
.
April
12
th
, 201
8
Rockport
, Canada
–
El Nino Ventures Inc
(TSX.V:
ELN
; OTCQB:
ELNOF
; FSE:
E7Q.
F)
is
pleased to
update our shareholders on the
three
recently acquired, 100%
owned,
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
.
E
l Nino Ventures (ELN)
Chairman
and CEO Harry Barr
states;
“
The Company is
pleased
to
update its shareholders on the gold
potential of the
Great Northern Peninsula
of
Newfoundland
and the progress of the sale of our
minority interest in the Murray Brooke Polymetallic Project
.
Management is following the
exploration and development results closely from White Metal Resources and our technical team
is finalizing a summer/fall 2018 exp
loration program
in Newfoundland
.
Newfoundland is a
treasure chest of mineral
possibilities and is a mining friendly jurisdiction.
”
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
2
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).
Wh
ite Metal Resources recently announced
(
Newsfile Corp.
-
November 20, 2017
,
January 30
th
,
2018
, and
March 20
th
,2018
.)
significant amounts of highly anomalous gold assays over an area of
15
kilometers
in black shale units of the Hare Bay and Goose Tickle Formations. Mic
hael
Stares,
President of White Metal Resources state
d
in the
November 30
th
, 2017 news release that
;
“
Of
the
156 rock samples, 99 were collected from the main area of the black shale unit. On the basis of
the results
from the 99 samples, the Company has expanded the gold (Au) mineralization to the
north by approximately 3.75km, to the east
-
northeast by approximately 3.2 km, and to the south
by about 1.3 km.
Approximately 50% of the
grab samples collected in the Gunners
Cove area
assayed 100 ppb Au (0.1 g/t Au) or greater, with a maximum
of 2.14 g/t Au. Silver assay results are
also elevated, ranging from less than 5 ppb Ag to a maximum of 9.1 g/t Ag
(note: grab samples are
selective by nature and are unlikely to be repr
esentative of average grades).
Our recent
work at
the Gunners Cove Property has highlighted a large area of anomalous gold values and extended
the
discovery area substantially
.
Historically, this Property has seen very little exploration work
(minor prospe
cting),
adding to the importance of this new gold discovery.
Precious metal
mineralization is associated with and
appears to be largely hosted by pyritic nodules and stringers
accompanied by minor silicification and local
brecciation and
hosted by an exten
sive black shale
unit
.
”
Management of ELN are following the exploration results of White Metal Resources (TSX.
WHM), Benton Resources (TSX.V BEX), and Metals Creek Resources (TSX.V MEK) and in this
newly discovered Newfoundland gold district.
ELN’s
technical team is currently completing a
detailed exploration plan for its Newfoundland projects and further details will be forthcoming.
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.
3
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
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 10
th
, 2018 the price of Zinc wa
s $1.47/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 aft
er 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.
Update on Puma Exploration
On
March 2
nd
, 2018, Puma Exploration announced that it had signed a Strategic Development and
Exploration
Alliance with Trevali Mining Corporation
(TV)
.
In this release, Puma stated: “
Under the
terms of the LOI,
Trevali will provide up to 7.5 million dollars funding to finalize the acquisition of
the Murray Brook Deposit by Puma
within the timeframe negotiated
with Votorantim Metals
Canada Inc. (“VMC”) and
El Nino Ventures Inc. (“ELN”)
and to repay the $2.0 million loan received
by Puma (see news release February 26
th
, 2018). Following the acquisition by Puma of the VMC and
ELN interest
, the Murray Brook Deposi
t (ML252) shall be owned by TV and PUMA on a 75% and 25%
basis respectively.”
Management of ELN will keep its shareholders up to date on the progress of
this transaction.
Further announcements will be forthcoming.
4
Stock Option Grant
In addition, the Company announces that it has granted 150,000 incentive stock options to
a
consultant of the Company at an exercise price of $0.05 per share for a period of five (5) years from
the date of grant in accordance with the Company's Stock Optio
n Plan. The Stock Options granted
will be subject to vesting restrictions and will vest over a period of one (1) year from the date of
grant. The options are subject to 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)
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 company is currently
evaluating
other
mineral projects.
Subject to the completion of
the sale
of the Murray Brook Project, management may also consider investments outside 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, review
ed or prepared by Carey Galeschuk
, P.Geo
, a consulting geoscientist
for
El Nino Ventures
.
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
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Ven
ture
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 regul
atory 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.