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El Niño Ventures acquires 100% of a Large Iron Ore Project in Quebec. Directors Approve Name Change and Consolidation
November 16, 2022, Rockport, ON, Canada – El Nino Ventures Inc. (TSXV: ELN; OTCQB: ELNOF; FSE: E7Q.F). Management and the board are pleased to announce that, subject to regulatory approval, the Company has finalized an agreement with 743584 Ontario Inc. (the “Vendor”), who is at arms length to the Company, to acquire 100% of 191 claims within the Lac Otelnuk Iron Ore Project by paying for the 2022 assessment (~$30,000). The Vendor retains a 2.5% royalty with buy-down provisions.
The Project is located in Nunavik, Province of Quebec, in the central portion o the Labrador Trough iron range as shown in figure 1. The property is situated approximately 155km in a straight-line northwest of Schefferville and 255KM South of Kuujjuaq. Schefferville is located approximately 1200km northeast of Montreal.
The Project has previous expenditures of approximately $150 million, including 43-101 resource calculations completed in 2013 and a Feasibility Study completed on it in March of 2015. Management is completing its due diligence and working with several technical groups to form a go-forward plan. The Company plans to press release further details on the Project and its development plan within the next 30 – 60 days.
Figure 1: Lac Otelnuk Iron Ore Project
In addition, the Board of Directors have approved and authorized a consolidation of the issued and outstanding common shares of the Company on the basis of two and one half (2.5) old for one (1) new, consolidating the Company’s current issued and outstanding from 67,286,970 common shares to 26,914,788 common shares.
The Company will not be issuing fractional shares as a result of the consolidation. Instead, all fractional shares equal or greater to one-half will be rounded to the next whole share. The Company’s outstanding stock options and share purchase warrants will be adjusted upon completion of the consolidation.
A letter of transmittal will be sent to the registered shareholders providing instructions to surrender the share certificates evidencing their pre-consolidated common shares for replacement certificates representing the number of post-consolidated common shares they are entitled to as a result of the consolidation. Until surrendered, each certificate representing the pre-consolidated common shares will be deemed to represent the number of post-consolidated common shares that the holder thereof is entitled to as a result of the consolidation.
In conjunction with the consolidation, the Board of Directors have also authorized a name change for El Nino Ventures. The name change and consolidation remain subject to TSX Venture approval. The effective date and further details of the name change will be disclosed in a subsequent news release.
El Niño Ventures Inc. is a mineral exploration company, who for the last 13 years working with Votorantim Metals Canada Inc. (“Votorantim”), has focused on Exploration for Zinc, Lead, Copper and Silver, and gold in New Brunswick, Canada.
Management is currently reviewing its options in regards to its 29.1% minority interest in our Murray Brook joint venture with Votorantim. One of the company’s strategic plans is to sell its interest in the Murray Brook Zn-Pb Project. ELN did receive a 0.67% net smelter return (“NSR”) royalty on the Murray Brook Project as part of its previous agreement with Puma Exploration (“Puma”). However, Puma was unable to complete the option it had to purchase Murray Brook.
The road accessible Murray Brook Deposit represents one of the largest undeveloped VMS polymetallic projects in the world-renown Bathurst Mining Camp, New Brunswick.
The Board of Directors of ELN has recently agreed to Management’s request to look at diversifying the Company into other areas within the resource sector. The Company continues to investigate new acquisitions for ELN and plans to use the Prospector Generator model which reduces risk, share dilution and increases discovery potential. In the event of a sale of ELN’s Murray Brook interest, it would amount to a Non-Dilutive Financing for the Company and Management plans to use these funds for working capital and to acquire additional high quality mineral projects.
On behalf of the Board of Directors
“Harry Barr”
Harry G. Barr
Chairman and CEO
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: 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.