IRW-PRESS: Nicola Mining Inc. .: Nicola Mining has signed a purchase agreement for Go– and the Silver Center with Ocean Partners Holdings
VANCOVER, British Columbia – (April 30, 2021) – Nicola Mining Inc. (TSXV: NIM) (FSE: HLI) (the company or Nicola) has entered into a partnership with Ocean Partners UK Limited1 (Ocean Partners “), a company that provides global commercial services for mining, smelters and refineries has signed a purchase agreement (purchase agreement) for the Gold and Silver Center The purchase agreement also includes a revolving prepayment arrangement of US $ 500,000 (prepayment) to enable the company to enter into a purchase agreement with the expected start of processing activities at its processing facility in Merritt.
On April 26, 2021, the company requested a down payment of $ 250,000, which was subsequently received on April 27, 2021. Funding is expected to prepare the processing plant for production and potential acquisitions. The prepayment terms are a three-month LIBOR rate plus 5.5% per annum plus a fee of $ 5,000 for the first prepayment. The company will pay interest payments for the first six months and repay the principal in October 2021. At this point, the company will again be able to take advantage of the prepayment option of $ 500,000.
The undiluted down payment enables the company to complete the investment project and approximate the period between processing plant restart and cash flow. It is not the Net Smelter Return (NSR) license fee and there is no obligation for the company to resume payments once the claimed amount is paid. The main reason the company chose Ocean Partners to sell the center is Ocean Partners’ vision that Nicolas Merritt’s processing facility has the potential to become a small / high-quality project processing center in British Columbia. Ocean Partners has also offered attractive purchase terms and Ocean Partners has expressed an interest in providing Nicola with financing options for the future merger of the gold and silver projects.
The company also announced that Cameron Lilly, P.Eng. , Has taken over the position of Operations Plant Manager at Merritt. Mr. Lilly has held senior positions at leading processing plants across British Columbia for two decades and is an expert in flotation plant optimization, including throttling removal, production accounting, plant design, and industrial ventilation / dust control. His experience in operational and environmental capabilities will add value to Nicholas’ business and his continued commitment to the environment.
Peter Espaeg, CEO of Nicola commented, “We are very excited about the opportunity to work with Ocean Partners and the access to the undiluted financing options that they provide to us. It also reduces the need for the conclusion of the NSR agreement. We also recognize the project integration potential offered by the state-of-the-art processing facility. The fully licensed and costed $ 30million However, we still recognize that the company’s greatest long-term value lies in the 100% owned New Craigmont copper project, in which we will soon begin our exploration program for 2021.
“We have realized the significant investment and long-term commitment required for the projects to obtain approval for a processing plant in British Columbia. We believe that Nicolas has received approval for the first regional site to receive high-quality gold and silver raw materials for the processing plant,” said Brent O’Mland, Chief Financial Officer of Ocean Partners. From all over British Columbia, we are looking forward to a long term relationship.
Scientific and technical information
Kevin Wells, P. Geo, a company geological advisor, is a qualified independent person as defined in National Instrument 43-101 – Mineral Project Disclosure Standards for the technical information contained in this press release.
About the mining of Nikola
Nicola Mining Inc. It is a small mining company listed on the TSX Venture Exchange and is about to resume processing operations at its modern 100 percent owned plant and recovery facility located near Merritt, British Columbia. A fully licensed mill can process gold and silver using gravity and buoyancy processes. The company is also wholly owned by Treasure Mountain, a high-quality silver property, and a working gravel pit located near the processing plant.
Via the new Craigmont property
In November 2015, Nicola became the first company in decades to incorporate a New Craigmont Property and has been active in mineral exploration since then. The property is 100% copper-owned with an active mining permit (M-68) and is located 20 miles south of the world-class Highland Valley Porphyry area. The property is located near the southern end of Guichon Creek Lake, which is home to highland Valley copper deposits.
There are currently no estimates of the mineral resources on the property. Historical resource accounts other than 43-101 are included in the internal memos and geological reports of Placer Development Ltd. Notarized in writing. For more details on the property, see the Technical Report titled Technical Report on Ownership of Copper and Iron Thule, Southern British Columbia, Canada Submitted in May 2013 to Sedar at www.sedar.com.
To the Board of Directors:
CEO and Director
Additional information is available from:
Responsible person: Peter Espig
Phone: (778) 385-1213
Email: [email protected]
TSX Venture and its regulatory bodies (referred to as Regulatory Services Provider in the TSX Venture Exchange platform) bear no responsibility for the adequacy or accuracy of this issuance.
The source language (usually English) in which the original text was published is the official, authorized, and legally valid version. This translation is included for a better understanding. The German version can be abbreviated or summarized. We are not responsible or liable for the content, correctness, suitability, or accuracy of this translation. From the translator’s point of view the letter does not constitute a buy or sell recommendation! Please note the original report in English at www.sedar.com, www.sec.gov, www.asx.com.au/ or on the company’s website!
1Ocean Partners operates in a number of countries including Canada, Chile, China, Cyprus, Mexico, Mongolia, the Netherlands, Peru, Taiwan, Turkey, Great Britain and the USA, and has agencies in Argentina, Australia, Bolivia, Brazil, Chile, Ecuador, India, Japan, South Africa, South Korea. The company has a strong global network of relationships and connections in the base metals mining and smelting sectors.
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