VANCOUVER, Feb. 26, 2013 /CNW/ - El Niño Ventures Inc. ("ELN" and the "Company") (TSX.V: ELN) (Frankfurt: E7Q) (OTCQX: ELNOF) is pleased to announce a non-brokered flow-through and non flow-through private placement of up to a combined 33,333,333 units for gross proceeds up to $2,000,000.
Each non flow-through unit ("NFT Unit") at a price of $0.06 per NFT Unit will consist of one common share and one-half of one non-transferable share purchase warrant ("Warrant"). Each Warrant will entitle the holder to purchase one common share of the Company at a price of $0.12 per share for 18 months from closing.
Each flow-through unit ("FT Unit") will consist of one common share and one-half of one non flow-through, non-transferable share purchase warrant at a price of $0.065 per FT Unit. Each Warrant will entitle the holder thereof to purchase one additional non flow-through common share of the Company at $0.13 for a period of 18 months from closing.
The proceeds from the private placement received from the sale of the flow-through units will be used for the further development and exploration of the Murray Brook Polymetallic project and exploration of adjacent Camel Back property (Figure 1), both located in the in Bathurst mining camp, New Brunswick. The proceeds from the sale of NFT Units will be used as working and general working capital.
The private placement and any finder's fees payable are subject to regulatory approval. Any securities issued pursuant to the offering shall be subject to a four month and a day hold period commencing on the closing date.
Work in 2013 will include an amended Resource Estimation, refinement to Phase 1 Metallurgy Study, Preliminary Economic Assessment Study and phase 2 Metallurgy Study (pilot plant) of Murray Brook project and Property scale exploration including geophysical surveys and drilling at adjacent Camel Back project.
About El Niño Ventures Inc. Bathurst Projects
El Niño Ventures Inc. has two active projects in the Bathurst Mining Camp:
1. Murray Brook Project
The Murray Brook project is a polymetallic, massive sulfide deposit and is one of the largest deposits discovered to date 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.
A $3 million exploration budget was approved for the 2012 exploration program. It included $2.5 million for drilling to bring resources into the measured category at the Murray Brook deposit and $500,000 for exploration of the Murray Brook and Camel Back properties, both of which are covered by the option agreement with Murray Brook Minerals. To date, more than 28,000 metres of drilling has been completed with encouraging results. In February 2012, an NI43-101 compliant resource estimation was announced (see news release. The technical report is filed on SEDAR.com and also available on ELN's website.
An updated NI43-101 mineral resource estimation and metallurgical test results are slated for completion by the end of March 2013. Results of these reports will be incorporated in a Preliminary Economic Assessment "PEA" that is slated for completion in the first quarter of 2013.
ELN and Votorantim Metals Canada (VMC) currently own 70% of the project, of which 35% is held by each of the two parties. Under a purchase agreement signed by VMC on August 28, 2012 with MBM and Murray Brook Resources Inc. (collectively the owners), VMC acquired the right to purchase the additional 30% of the Murray Brook Project from the owners.ELN has been provided the option to purchase an additional 15% in the project.
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.
Figure 1 - Exploration of Murray Brook and adjacent Camel Back properties for additional VMS deposits (https://www.elninoventures.com/s/NewsReleases.asp?ReportID=573973)
2. Bathurst Option Joint Venture Project (BOJV)
Consists of an initial 4,712 claims in the Tri-Party Agreement with Xstrata & VM Canada whereby VM Canada may 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.
Qualified Person Statement
This news release has been reviewed and approved for technical content by Ali Hassanalizadeh M.Sc. MBA
P.Geo a qualified Person under the provisions of National Instrument 43-101.
About El Niño Ventures Inc.
El Niño Ventures Inc. is an international exploration company, focused on exploring for lead, zinc, copper, gold and silver in New Brunswick, Canada and copper in the Democratic Republic of Congo ("DRC").
On behalf of the Board of Directors
(signed)
Harry Barr
Chairman & CEO
El Niño Ventures Inc.
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. 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.
SOURCE: El Nino Ventures Inc.
