VANCOUVER, June 25, 2012 /CNW/ - El Niño Ventures Inc. ("ELN" and the "Company") (TSX.V: ELN; Frankfurt:
E7Q; OTCQX: ELNOF) is pleased to announce that it has entered into a letter agreement (the
"Agreement") with Desjardins Securities Inc. ("Desjardins") where the
Company has appointed Desjardins to act as sole agent on a best efforts
basis under a brokered private placement offering (the "brokered
offering") to market subscriptions for Units to qualified investors.
This brokered offering will be under the same terms and run concurrent
to the Company's previously announced non-brokered private placement
(see news release dated May 14, 2012) of a flow-through and non
flow-through private placement of up to a combined 18,181,818 units for
gross proceeds up to $2,000,000. The terms for the brokered and
non-brokered private placement are as follows:
Each non flow-through unit ("NFT Unit") at a price of $0.11 per NFT Unit
will consist of one common share and one-half of one non-transferable
share purchase warrant ("Warrant"). Each whole Warrant will entitle the
holder to purchase one common share of the Company at a price of $0.21
per share for 18 months from closing, subject to an accelerated expiry,
such expiry being accelerated to 30 days in the event the Company's
shares have closed at or above a price of $0.40 per share for 10
consecutive trading days on the TSX Venture Exchange.
Each flow-through unit ("FT Unit") will consist of one common
flow-through share in the capital of the Company and one-half of one
non flow-through, non-transferable share purchase warrant at a price of
$0.13 per FT Unit. Each whole warrant will entitle the holder thereof
to purchase one additional non flow-through common share of the Company
at $0.23 for a period of 18 months from closing subject to an
accelerated expiry, such expiry being accelerated to 30 days in the
event the Company's shares have closed at or above a price of $0.40 per
share for 10 consecutive trading days on the TSX Venture Exchange.
In consideration for their services, Desjardins shall receive a
corporate finance fee of $10,000 plus applicable taxes and a fee equal
to 7% of the gross proceeds raised by Desjardins in connection with the
brokered placement as well as broker warrants in the amount equal to 7%
of the aggregate number of Units sold by Desjardins pursuant to the
brokered placement. Each broker warrant shall be exercisable for a
period of eighteen months (18) from the date of issuance. Purchasers
of the non flow-through and flow-through units will be subject to a
hold period of four months plus one day commencing on the Closing
date. This brokered and non-brokered private placement and any broker
or finder's fees payable are subject to final regulatory approval.
The proceeds of this brokered and non-brokered private placement will be
used to fund the 2012 exploration budget at the Murray Brook
Polymetallic project in Bathurst, New Brunswick and general working
About El Niño Ventures Inc. Bathurst Projects
1. Bathurst Mining Camp Project: (Tri-Party Agreement)
The Bathurst Mining Camp Project is a 50/50 Joint Venture with ELN and
Xstrata Zinc Canada. The Tri-Party Agreement allows for Votorantim
Metals Canada Inc. ("VM Canada") to earn up to 50% of the project by
incurring exploration expenditures of $10 million over a period of 5
years. VM Canada may further increase its interest to 70% by spending
an additional $10 million over 2 years. The Bathurst Mining Camp
Project budget for calendar 2012 is $1.88 Million and it will consist
of Airborne Gravity Gradiometry follow‐up, direct drilling, guided by
modeling of associated magnetic or EM anomalies. Drilling after limited
ground surveys if modeling not satisfactory, and follow‐up ground
surveys and drilling as appropriate.
2. Murray Brook Project:
The Murray Brook polymetallic project, which has an excellent
infrastructure, is one of the largest massive-sulfide deposits in the
Bathurst Mining Camp. On May 10, 2012 ELN announced that Murray Brook
Minerals Inc. has been given formal notice by ELN and Votorantim Metals
Canada ("Votorantim") of a 50% earned interest in the Murray Brook,
polymetalic project, Bathurst, New Brunswick. MBM has also been
provided with a valid notice that ELN and Votorantim are exercising
their option to acquire and become owner of an additional 20% (for a
total of 70%) beneficial interest in the Murray Brook mining claims.
Currently, the project has an 18,000 metre drill program in progress
with the objective of upgrading the inferred and indicated resources to
measured resources, defining additional new surface resources at the
northwest extension target area as well as completing preliminary
metallurgical testing on selected portions of the deposit.
In 2011, ELN and VMC spent $2.1 million on exploration; and completed
more than 10,000 meters of drilling. Drill results to date have been
A recently completed (February 2012) NI 43‐101 Mineral Resource Estimate
for the Murray Brook Zn‐Cu‐Pb‐Ag‐Au deposit, which includes explanatory
footnotes, is presented below. The resource estimate is based on
various assumptions regarding mining methods, processing and metal
recoveries, payable metal NSR credits and metal prices. This estimate
makes no provision for capital costs to mine the deposit, nor mill the
material mined, as resources are not reserves and the reader should not
presume economic viability.
Table-1 Murray Brook Mineral Resource Estimate Summary
M + I
Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues.
The quantity and grade of reported Inferred resources in this estimation
are uncertain in nature and there has been insufficient exploration to
define these Inferred resources as an Indicated or Measured mineral
resource and it is uncertain if further exploration will result in
upgrading them to an Indicated or Measured mineral resource category.
The mineral resources in this news release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standard Committee on Reserve Definitions and
adopted by CIM Council.
The Dec 31, 2011 two year trailing average US metal prices used in this
estimate were $3.71/lb Cu, $1.03/lb Pb, $0.98/lb Zn, $1,397/oz Au,
$27.63/oz Ag. The C$/US$ Exchange rate was 0.99.
Overall payable metal in the NSR calculation were 81% Cu, 72% Pb, 64%
Zn, 71% Au and 56% Ag.
Mineral resources were determined within a Whittle pit shell with 45
degree slopes utilizing mining costs of C$2.50/tonne for mineralized
material and waste rock, and C$1.75/tonne for overburden.
Costs used to determine the C$20/tonne NSR resource cut-off value were
processing at C$15/tonne and G&A C$5/tonne.
The Murray Brook Mineral Resource Estimate was undertaken by Eugene
Puritch, P.Eng. of P&E Mining Consultants Inc.
Qualified Person Statement
This news release has been reviewed and approved for technical content
by Ali Hassanalizadeh M.Sc. MBA P.Geo a qualified Person under the
provisions of National Instrument 43‐101.
About El Niño Ventures Inc.
El Niño Ventures Inc. is an international exploration company, focused
on exploring for lead, zinc, copper, gold and silver in New Brunswick,
Canada and copper in the Democratic Republic of Congo ("DRC").
On Behalf of the Board of Directors
Chairman & CEO
El Niño 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. 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
SOURCE El Nino Ventures Inc.
For further information:
Tel: +1 604 685 1870 Fax: +1 604 685 8045
Email: email@example.com or visit www.elninoventures.com
650-555 West 12th Avenue, City Square, West Tower, Vancouver, B.C., Canada, V5Z 3X7