VANCOUVER, March 5 /CNW/ - El Nino Ventures Inc. ("ELN" or the "Company") (TSX.V: ELN; FSE: E7Q) wishes to announce an update on the Company's business affairs in the Democratic Republic of the Congo (the "DRC"). Upon review of the Company's exploration portfolio in the DRC, ELN has made a decision to terminate its agreement with Phoenix Mining Corporation SPRL ("PMC") to acquire a 70% interest in a joint venture company into which PMC purportedly could transfer its rights to the DRC research permit designated as PR9316.
As a result of ELN's notice of termination of the agreement with PMC, a claim was initiated by PMC in the DRC against the Company. At the time this claim was filed, George Kavvadias was a principal shareholder of PMC. The lawsuit alleges that ELN is obligated under the terminated agreement to make a first anniversary payment to PMC of $250,000 as well as to pay damages. Management's position is that the DRC is not the forum for disputes under that agreement and that no such payment obligation exists for various reasons including that the termination notice was given in a timely manner prior to the first anniversary of the agreement. The Company has retained legal counsel in the DRC to address PMC's claims, all of which the Company firmly believes are unfounded and without any merit.
The Company was also served at the same time with a claim filed in the DRC by GCP Group Ltd. ("GCP"). George Kavvadias is also the Chief Executive and principal shareholder of GCP. In 2007, Mr. Kavvadias had been retained on a consulting basis as DRC Country Manager for ELN. In connection therewith, he managed Infinity Resources SPRL, a DRC joint venture company owned by ELN (as to 70%) and GCP (as to 30%). GCP is claiming fees and expenses alleged to be owing to it by ELN in connection with the provision of services alleged to have been rendered by GCP to Infinity Resources SPRL. El Nino has retained legal counsel in the DRC to respond to these claims which it firmly believes are unfounded and without any merit.
The Company is also considering initiating counter claims relating to the above-mentioned lawsuits and joint venture agreements.
About El Nino Ventures Inc.
El Nino Ventures is a mineral exploration company, focused on copper/cobalt exploration in the DRC (see releases January 12, 2009 and February 25, 2009). The Company holds a 50% interest in an extensive base metal project located within the Bathurst mining camp in Ontario, Canada. El Nino entered into an option agreement with Votorantim Metals Canada Inc. and Xstrata Zinc Canada whereby Votorantim may earn a 50% interest in El Nino's landholdings by expending $10 million over 5 years and may further increase its interest in El Nino's landholdings to 70% by expending an additional $10 million over a further two years. Please see release dated August 6, 2009.
On Behalf of the Board of Directors,
"Harry Barr"
Harry Barr, Chairman and Acting 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.
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.