El Nino Ventures Inc. Closes First Tranche of Non-Brokered Private Placement
October 03 2012 - 4:36AM
PR Newswire (Canada)
VANCOUVER, Oct. 5, 2012 /CNW/ - El Niño Ventures Inc. ("ELN" and
the "Company") (OTCQX: ELNOF) is pleased to announce that it has
closed the first tranche of its non-brokered flow-through and non
flow-through private placement for gross proceeds of $1,351,452.
The Company issued 5,166,133 non flow-through units (NFT Units) at
a price of $0.09 per NFT Unit. Each NFT Unit consists 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 $0.15 per
share 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 $0.25
per share for 10 consecutive trading days on the TSX Venture
Exchange. In addition, the Company issued 8,865,000 flow-through
units ("FT Unit") at $0.10 per FT Unit. Each FT Unit consists
of one common flow-through share and one-half of one
non-transferable, non flow-through, share purchase warrant.
Each whole Warrant will entitle the holder to purchase one non
flow-through common share of the Company at a price of $0.16 per
share 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 $0.26
per share for 10 consecutive trading days on the TSX Venture
Exchange. The proceeds of this private placement will be used to
fund the 2012 exploration budget at the Murray Brook Polymetallic
project in Bathurst, New Brunswick and general working capital. The
Company has paid $24,407.50 and 166,600 warrants in finder's fees
in connection with this first tranche closing of the private
placement. All of the securities to be issued by the Company in
connection with this private placement will be subject to a hold
period which expires February 3, 2013, four months and one day
after the closing date. About El Niño Ventures Inc. El Niño
Ventures Inc. is an international exploration company, focused on
exploring for zinc, copper, gold, silver and lead in New Brunswick,
Canada and copper/cobalt in the Democratic Republic of Congo
("DRC"). About El Niño Ventures Inc. Bathurst Projects El Niño
Ventures Inc. has two active projects in the Bathurst Mining Camp.
1. Bathurst Mining Camp Project -
Bathurst Option Join Venture (BOJV) The BOJV project initially
comprised of 4,712 claims owned 50% El Nino/50% Xstrata Zinc and
2907 claims wholly owned by Xstrata Zinc, together with an area of
interest clause in which El Nino and Zstrata Zinc hold equal
interest. The Tri‐Party Agreement (BOJV) with El Nino Ventures,
Xstrata Zinc & Votorantim Metals ("VM) Canada (wholly owned
subsidiary of Votorantim Metais, the 2(nd) largest mining company
in Brazil) provides VM Canada the opportunity to incur exploration
expenditures of $10 million over a period of 5 years to earn a 50%
interest. VM Canada may further increase its interest to 70% by
spending an additional $10 million over 2 years. VM Canada has
spent approx. $6.5 to date and have completed more than 6,000
metres of exploration drilling of the 12,000 metres planned. In
September 2012 VM Canada contracted Daignos Inc of Brossard, Quebec
to complete a comprehensive study utilizing their proprietary
software to identify exploration targets within the area of
interest that show high statistical probability of mineralization.
It is the BOJV agreement that provided ELN with the option to
participate in the Murray Brook Project and any new additional
acquisitions in the area of interest.
2. Murray Brook Project - Option
JV/Votorantim Metals Canada The Murray Brook project is a
polymetallic, massive sulphide deposit. Historically, the
deposit is the fifth largest in the Bathurst Mining Camp, New
Brunswick. The Murray Brook property is located 60 km west of
Bathurst. It is supported by excellent infrastructure,
including paved roads, grid electricity and communities to provide
goods, services and skilled labour (Figure 1). To date, more
than 28,000 metres of drilling has been completed with encouraging
results. In February 2012, NI43-101 resource estimation was
announced (see news release dated Feb. 28, 2012). The technical
report is filed on SEDAR.com and also available on ELN's website.
An updated NI43-101 is slated for release by the end of 2012, with
plans for a PEA/Scoping study in early 2013. Currently, El Nino and
Votorantim each hold a 35% interest for a total of 70% in the
Murray Brook Polymetallic project in Bathurst, New Brunswick.
Through a Purchase Sell Agreement, which has been accepted by the
owners, both El Nino and Votorantim have an option to earn-in for
the remaining 30% interest, resulting in both companies having a
50% interest in the Murray Brook project. By funding its share of
the ongoing costs for the project, El Nino is in the enviable
position for a junior to be in a 50/50 Joint Venture with a major
producer on a project that is moving rapidly through the
development stages. Although the terms of the Participation
Agreement provided for a three-year period to earn the initial 50%
and two years to earn the additional 20%, ELN and VMC completed
their earn-in in less than 18 months. Encouraging drill results and
a very positive NI 43-101 resource estimation accelerated the
exploration and development programs and is a testament to both ELN
and Votorantim's commitment to aggressively advancing the project
(see ELN press releases dated: February 28 and May 17, June 5, June
27, July 17, July 30, August 14 and August 28, 2012). The company
is currently completing the 2012 $3 million exploration program
that included: -- $2.5 million exploration a the Murray brook
deposit, 97 holes drilled for a total of 18,500 metres -- $500,000
exploration at the adjacent Camel Back property -- Updated resource
calculation and initial metallurgical study 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. The Technical Report
on the 2012 NI 43-101 Mineral Resource Estimate is filed on
SEDAR.com and is available on ELN's website. Metallurgical
test-work of bulk sample material from the Murray Brook deposit is
currently underway at RPC Laboratories (Fredericton, New
Brunswick), under the direction of Votorantim Metals Canada Inc.,
operators of the Murray Brook Project. Three holes were drilled to
provide sample materials for metallurgical tests. The test-work is
focused on determining potential metal recoveries based on a
recommended metals recovery process flowsheet which, subsequently,
will form the basis for a small scale metallurgical pilot plant
program. Metallurgical results, along with a revised resource
estimate which will incorporate 2012 drill results, will form the
basis of a Preliminary Economic Assessment (PEA or Scoping Study)
study to be completed in Q1 2013. Figure 1- Land tenure map showing
the location of optioned properties and proximity to infrastructure
in the Bathurst Mining Camp.
http://www.elninoventures.com/s/NewsReleases.asp?ReportID=551566
Kasala Copper-Cobalt Project - DRC The Kasala Copper/Cobalt project
is located in the Central African Copper belt, approximately 25 km
from Minmetals Mining Resources' Kinsevere Mine (formerly owned by
Anvil Mining). The Kinsevere mine has a resource of 24.8 million
tons grading 3.75% Cu. Drill intercepts on the Kasala project of up
to 232 metres grading 3.28% Cu. The project is currently under
Force Majeure pending outcome of arbitration in British Columbia
and litigation in the DRC. Qualified Persons Statement This news
release has been reviewed and approved for technical content by Ali
Hassanalizadeh M.Sc. P.Geo., a qualified Person under the
provisions of National Instrument 43‐101. On Behalf of the Board of
Directors, "John Oness" John Oness, COO & Director 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. 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 statements. El Nino Ventures Inc.
CONTACT: Tel: +1 604 685 1870 Fax: +1 604 685 8045Email:
info@elninoventures.com or visit www.elninoventures.com650-555 West
12th Avenue, City Square, West Tower,Vancouver, B.C., Canada, V5Z
3X7
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