El Niño Ventures Inc. Closes First Tranche of Non-Brokered Private Placement
VANCOUVER, Oct. 5, 2012 /CNW/ - El Niño Ventures Inc. ("ELN" and the
"Company") (TSX.V: ELN) (Frankfurt: E7Q.N) (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
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
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
-- $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.
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, 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
Tel: +1 604 685 1870 Fax: +1 604 685 8045 Email:email@example.com or
visitwww.elninoventures.com 650-555 West 12th Avenue, City Square, West
Tower, Vancouver, B.C., Canada, V5Z 3X7
SOURCE: El Nino Ventures Inc.
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CO: El Nino Ventures Inc.
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-0- Oct/05/2012 21:36 GMT
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