'No Holds Barred'! News Release!
El Nino Ventures arranges $500,000 private placement
2016-04-21 13:26 ET - News Release
Mr. Harry Barr reports
EL NINO ANNCOUNCES PRIVATE PLACEMENT OF UP TO $500,000; NEGOTIATIONS IN PROGRESS TO SETTLE DEBT OF UP TO $390,000
El Nino Ventures Inc. intends to complete a non-brokered private placement for up to 25 million units at a price of two cents per unit raising gross proceeds of up to $500,000 pursuant to a discretionary waiver from the TSX Venture Exchange of the five-cent minimum pricing requirement. Each unit comprises one common share and one share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the company at an exercise price of five cents per share, for a period of two years from closing, subject to the acceptance of the TSX Venture Exchange dated April 21, 2016.
The company is currently working with the TSX Venture Exchange and its creditors to restructure the outstanding debt through a combination of the following: (1) a substantial reduction of the outstanding debt (50 cents on the $1), (2) shares (shares for debt), and (3) cash payments.
Proceeds from the private placement in the amount for up to $309,000 will be used for further exploration and development on the company's Murry Brook polymetallic project in New Brunswick. Up to $66,000 will be used to settle related party debt, and up to $125,000 will be used for general working capital.
Finders' fees may be payable in cash, shares or warrants, or a combination in connection with the private placement.
The securities to be issued with respect to the private placement will be subject to a four-month-and-a-day hold period in accordance with applicable Canadian securities laws. Completion of the private placement and any finders' fees payable are subject to regulatory approvals.
We seek Safe Harbor.