El Nino Ventures options Bathurst project to Votorantim Metals Canada Inc.admin
El Nino Ventures Inc. announce that Votorantim Metals Canada Inc. (Votorantim) has elected to enter into a Memorandum of Understanding (MOU) with the Company concerning a geological due diligence and subsequent option Agreement whereby Votorantim may elect to earn up to a 70% interest in 1805 mineral claims in the Bathurst Mining Camp, New Brunswick, in which ELN owns 50% interest and Xstrata Canada Corporation – Xstrata Zinc Canada Division (Xstrata Zinc), owns 50% interest.
Votorantim Metals Canada Inc. is a subsidiary of Votorantim Metais which is part of the Votorantim Group which was founded in Brazil in 1918 and now operates in fifteen countries with over sixty thousand employees. Votorantim Metais is the largest electrolytic nickel producer in Latin America and a worldwide leader in zinc production as well as a significant producer of aluminum and steel.
The tripartite MOU is between Votorantim, ELN and Xstrata Zinc whereby Votorantim may elect, upon satisfactory completion of a geological due diligence, to enter into a subsequent option agreement to earn up to a 70% interest in mineral claims (the “Property”) comprised of 1805 claims owned 50% ELN 50% Xstrata, 2907 claims owned 100% by Xstrata Zinc, together with an Area of interest in which ELN and Xstrata Zinc hold equal interests.
Votorantim may earn a 50% interest in the Property by incurring exploration expenditures of $10 million over a period of 5 years and may further elect to increase its interest to 70% by spending another $10 million over an additional two years. Upon Votorantim vesting with 50% interest in the Property ELN will retain a 25% interest in the 1805 claims as well as a 25% interest in any mineral claims staked subsequently by the parties within the Area of interest. Should Votorantim increase its interest to 70% then ELN interest would be reduced to 15% from 25%, respectively.
Several historical tonnage and grade estimates exist for zinc and copper mineralisation occurring within the 1805 claims in which ELN currently holds 50% interest, which were derived from earlier drilling campaigns.
ELN would also like to report that Mr. Morris Medd has resigned from the Board of Directors of the Company. The Company would like to thank Mr. Medd for his contributions to the Company.
Mr Jean Luc Roy, President CEO of El Nino states: “We welcome the opportunity to be involved with Votorantim on our properties in the Bathurst Mining Camp. We believe that their involvement will bring out the true value of our properties with significant exploration commitment.”