Puma Exploration (PUM-V) acquired Murray Brook from El Niño Ventures (ELN-V)
Oct 13, '16 - NR
EL Nino Ventures would like to announce that it has executed an asset sale agreement with Puma Exploration to relinquish its 32.1% interest in the Murray Brook Zn-Pb-Cu-Ag Volcanogenic Massive Sulphide ("VMS") deposit located in the Bathurst Mining Camp ("BMC") of northern New Brunswick. The Murray Brook property consists of Mining Lease 252 and contiguous Mineral Claim Block 4925 (245 claims) located 11 km west of the producing Caribou Mine, which is owned and operated by Trevali Mining Corporation. The aforementioned transactions are expected to close on or about November 15th, 2016. El Nino's joint venture partner Votorantim Metals Canada Inc. on the Murray Brook Project has also optioned their total interest of the Murray Brook Project to Puma.
Harry Barr, Chairman and CEO comments; "We are pleased with the terms and conditions of our sale of the Murray Brook asset. Given the fact that our company had a minority position in the project, we believe that the proceeds from the sale will allow the company to acquire new projects and focus on our existing assets and allow management the funding needed to acquire key assets in the precious metals space."
Terms of the Transaction and Payments to El Nino from Puma
C$50,000 non-refundable deposit to be paid 10 days following the waiver of the ROFR from El Nino. This deposit becomes binding on receipt of the waiver of the ROFR from El Nino.
C$0.6 million upon closing of this transaction (no later than Nov.15th, 2016) C$0.4 million payable six (6) months after the closing (no later than May.15th, 2017)
C$1.0 million payable twelve (12) months from closing (no later than Nov.15th, 2017)
C$1.0 million payable twelve (24) months from closing (no later than Nov.15th, 2018)
El Nino will be given the right to buy 2,000,000 warrants of Puma's ordinary shares (the warrants) expiring 3 years after the closing of the transaction based on the following exercise prices: 1) 0 to Year
1 (Nov 15, 2017): Equal to the price of the acquisition equity financing;
2) Year 1 to Year 2 (Nov 15, 2018): a 20% premium to the price indicated in 1) above;
3) Year 2 to Year 3: a 20% premium to the price indicated in 2) above,
El Nino will receive a laddered Net Smelter Return on Production (NSR) starting at 0.25% at a zinc price of US$1.04/lb and increasing, in increments of 0.25%, to a maximum of 1.75% above US$1.50/lb Zn in relation to 32% of the production from the Murray Brook Property, which includes the Mining Lease and the Camel Back claims, for the life of the Murray Brook deposit and any new discovery made on the total project.
Votorantim Metals Canada Inc. will retain title to the project as security until the assumption of the environmental liability has been completed by Puma and Votorantim Metals Canada Inc.'s and El Nino's liability is released by the Government of New Brunswick.
El Nino will continue to maintain its current interest in the Bathurst Zinc Project - Bathurst Option Joint Venture (BOJV) also located in the Bathurst Mining Camp.
For more information on the Company please go to www.elninoventures.com
On Behalf of the Board of Directors
"Harry Barr"
Harry Barr
Chairman & CEO
El Nino Ventures Inc.
Further Information: Tel. 613 659 2773, 604.685.1870 or Toll Free 1.800.667.1870
Email: info@elninoventures.com or visit www.elninoventures.com |
