(TheNewswire)
November 22, 2022 – TheNewswire - Rockport, ON, Canada – El Nino VenturesInc.(“ELN” or the “Company”) (TSXV:ELN ) ; ( OTC:ELNOF ) ; ( FSE:E7Q.F). TheCompany is pleased to announce that, further to its news release ofNovember 16, 2022, ELN has received TSX Venture Exchange (the“Exchange”) approval for the transaction to acquire 100% undividedinterest in certain claims located in Nunavik, Quebec.
The Company has finalized the agreement with 743584Ontario Inc. (the “Vendor”), who is at arms length to the Company,to acquire 100% of 193 claims (previously announced 191 claims) withinthe Lac Otelnuk Iron Ore Project by paying for the 2022 assessment(~$30,000). The Vendor retains a 2.5% royalty with an option tobuy-down 1.75% of the royalty in one lump sum or as follows:
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Within 60 days following the date of exchange approval(anniversary date) the Company has the option to buy-down the royaltyfrom 2.5% to 2.15% by issuing $15,000 of common shares of theCompany;
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Within 60 days following the second anniversary date ofexchange approval, the Company has the option to buy-down the royaltyfrom 2.15% to 1.80% by issuing $15,000 of common shares of theCompany;
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Within 60 days following the third anniversary date ofexchange approval, the Company has the option to buy-down the royaltyfrom 1.80% to 1.45% by issuing $15,000 of common shares of theCompany;
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Within 60 days following the fourth anniversary date ofexchange approval, the Company has the option to buy-down the royaltyfrom 1.45% to 1.10% by issuing $15,000 of common shares of theCompany;
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Within 60 days following the fifth anniversary date ofexchange approval, the Company has the option to buy-down the royaltyfrom 1.10% to 0.75% by issuing $15,000 of common shares of theCompany;
Any shares that become issuable under the agreement aresubject to TSX Venture Exchange Policies. In the event theCompany’s shares are trading under $0.05 per share, shares issuablewill not be issued at a deemed price less than $0.03 per share, if theCompany’s shares are trading over $0.05 per share, any sharesissuable will not be issued at a deemed price less than $0.05 pershare, subject to allowable Discounted market Price pursuant to TSXVenture Exchange Policy. In addition, any shares that becomeissuable are subject to regulatory hold periods of four months plusone day in accordance with applicable CanadianSecurities Laws .
About Lac Otelnuk Project
The Project is located in Nunavik, Province of Quebec,in the central portion o the Labrador Trough iron range as shown infigure 1. The property is situated approximately 155km in astraight-line northwest of Schefferville and 255KM South of Kuujjuaq.Schefferville is located approximately 1200km northeast ofMontreal.
The Project has previous expenditures of approximately$150 million, including 43-101 resource calculations completed in 2013and a Feasibility Study completed on it in March of 2015. Managementis completing its due diligence and working with several technicalgroups to form a go-forward plan. The Company plans to press releasefurther details on the Project and its development plan within thenext 30 - 60 days.
Figure 1: Lac Otelnuk Iron Ore Project
About El Niño Ventures Inc.
El Niño Ventures Inc. is a mineral explorationcompany, who for the last 13 years working with Votorantim MetalsCanada Inc. (“Votorantim”), has focused on Exploration for Zinc,Lead, Copper and Silver, and gold in New Brunswick, Canada.
Management is currently reviewing its options inregards to its 29.1% minority interest in our Murray Brook jointventure with Votorantim. One of the company’s strategic plans is tosell its interest in the Murray Brook Zn-Pb Project. ELN did receive a0.67% net smelter return (“NSR”) royalty on the Murray BrookProject as part of its previous agreement with Puma Exploration(“Puma”). However, Puma was unable to complete the option it hadto purchase Murray Brook.
The road accessible Murray Brook Deposit represents one of the largest undeveloped VMS polymetallic projects inthe world-renown Bathurst Mining Camp, New Brunswick.
The Board of Directors of ELN has recently agreed toManagement's request to look at diversifying the Company into otherareas within the resource sector. The Companycontinues to investigate new acquisitions for ELN and plans to use theProspector Generator model which reduces risk, share dilution andincreases discovery potential. In the event of asale of ELN's Murray Brook interest, it would amount to a Non-DilutiveFinancing for the Company and Management plans to use these funds forworking capital and to acquire additional high quality mineralprojects.
On behalf of the Board of Directors
“Harry Barr”
Harry G. Barr
Chairman and CEO
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
Cautionary Note Regarding Forward Looking Statements:This release contains forward-looking statements that involve risksand uncertainties. These statements may differ materially fromactual future events or results and are based on current expectationsor beliefs. For this purpose, statements of historical fact may bedeemed to be forward-looking statements. In addition,forward-looking statements include statements in which the Companyuses words such as “continue”, “efforts”, “expect”,“believe”, “anticipate”, “confident”, “intend”,“strategy”, “plan”, “will”, “estimate”, “project”,“goal”, “target”, “prospects”, “optimistic” or similarexpressions. These statements by their nature involve risks anduncertainties, and actual results may differ materially depending on avariety of important factors, including, among others, the Company’sability and continuation of efforts to timely and completely makeavailable adequate current public information, additional or differentregulatory and legal requirements and restrictions that may beimposed, and other factors as may be discussed in the documents filedby the Company on SEDAR (www.sedar.com), including the most recentreports that identify important risk factors that could cause actualresults to differ from those contained in the forward-lookingstatements. The Company does not undertake any obligation to reviewor confirm analysts’ expectations or estimates or to releasepublicly any revisions to any forward-looking statements to reflectevents or circumstances after the date hereof or to reflect theoccurrence of unanticipated events. Investors should not place unduereliance on forward-looking statements.
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