Nicola Mining Inc. Signs Joint Venture Agreement

Mar 30, 2016 | News Releases

TSX.V: NIM

VANCOUVER, B.C., March 30, 2016 – Nicola Mining Inc. (the “Company” or “Nicola”) is pleased to announce that it has entered into the Lower Nicola Joint Venture Agreement (the “Agreement”) with 1050214 B.C. Ltd. (the “JV Partner”). Under the Agreement, the Company and the JV Partner will participate in the continued operation and expansion of the Company’s gravel business, which is located on District Lot 4234 (Thompson Nicola Regional District: Parcel 005-729-289) (the “Property”).

Currently, the Company has a royalty agreement (the “Royalty Agreement”) in place with Norgaard Ready-Mix Ltd. (“Norgaard”), a company whose products include sand and gravel aggregates, as well as ready-mix concrete. The Royalty Agreement will remain intact to allow Norgaard, which focuses on supplying its products to the Interior of British Columbia, to continue to use the Property. The JV Partner will focus on exploring and developing the gravel resource on the opposite side of Aberdeen Road with the interest of supplying aggregate to the Lower Mainland of British Columbia.

The JV Partner and the Company will form a joint venture (the “LNJV”) and will work towards increasing the amount of aggregate under the current gravel pit permit, Sand and Gravel Permit #G-15-019, from 60,000 tonnes per annum to 200,000 tonnes per annum. The increase in the gravel permit, if granted, will provide both Norgaard and the LNJV with the ability to extract aggregate from the same site and meet current market demand. Prior to commencing gravel operations targeted at the Lower Mainland, the LNJV will conduct a review of the Property and submit a Sand and Gravel Notice of Work and Reclamation Program. Until approvals of various permits, Norgaard shall be the exclusive miner of aggregate under Sand and Gravel Permit #G-15-019.

The Agreement also provides the JV Partner with the option to acquire a 50% interest in the Property for aggregate consideration of $1,125,000 payable upon certain milestones being achieved.

The JV Partner has agreed to make an initial contribution of $175,000 by April 15, 2016, which contribution will be used by the LNJV to conduct a full review of the site and work towards receiving operational permits.

Peter Espig, Chief Executive Officer, commented, “LNJV is a very exciting opportunity that highlights management’s creativity to create new revenue streams amidst trying markets for junior miners. We also continue to finalize modifications to recommence milling operations in April, 2016.”

Nicola has received approval to extend the financing it previously announced in New Releases dated November 19, 2015, November 24, 2015, December 7, 2015, January 21, and March 22, 2016 to on or before April 29, 2016.

The Company also announces that it has entered into an investor relations agreement (the “IR Contract“) with Tribeca Capital Partners Inc. (“Tribeca“). Under the Agreement, Tribeca will develop and execute a comprehensive marketing and investor communications program to help raise awareness of the Company. Tribeca will provide advice to the Company with respect to corporate development, producing and distributing effective marketing communication tools, increasing investor awareness, and introducing the Company to private investors, analysts, brokers, money managers, newsletter writers and other financial professionals.

Tribeca is not related to the Company and does not have any direct or indirect interest in the Company or its securities, other than the granting of 200,000 stock options. The Agreement is subject to TSX Venture Exchange approval.

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: Peter Espig
Contact: (604) 647-0142
peter@nicolamining.com

Cautionary Note Regarding Forward Looking Information:

This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information includes, without limitation, statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the statements that the Company will be able to obtain an amendment to its gravel permit to increase the amount of aggregate being removed from the Property, that the Company will be able to satisfy the obligations under the Agreement and that the Company will be able to obtain the required permits to commence operations of the proposed landfill for contaminated soil. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including the inability of the Company and/or the LNJV to obtain the required permits and approvals to operate the expanded aggregate operation and the landfill operation, and other factors beyond the Company’s control. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not assume any obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

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.

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Nicola Mining Announces Closing of the Third Tranche of Unit Financing

Mar 22, 2016 | News Releases

TSX.V: NIM

VANCOUVER, B.C., March 22, 2016 – Nicola Mining Inc. (the “Company”) is pleased to announce that it has completed a third tranche of its previously announced private placement financing (the “Financing”) as further described in its news releases of November 19, 2015, November 24, 2015 and December 7, 2016. In connection with the closing of the third tranche, the Company sold an aggregate of 2,250,000 units (each, a “Unit”), at a price of $0.08 per Unit, for gross proceeds of $180,000. Each Unit consisted of one common share of the Company (each, a “Share”) and one share purchase warrant (each, a “Warrant”). Each Warrant is exercisable into one Share at a price of $0.15 per Share for a period of two years from the date of issuance. The Company has raised a total of $2,084,500 from the closing of the first, second and third tranches of the Financing. The Company intends to complete additional tranches of the Financing in the future.

The Company did not pay any finder’s fees in connection with the Financing. Proceeds from the Financing will be used for general working capital.

An insider of the Company subscribed for 1,062,500 Units under the Financing, which is a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The participation of the insider in the private placement was exempt from the valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in Sections 5.5(a) and 5.7(a) of MI 61-101 in that the fair market value of the consideration of the Units to be issued to the insider did not exceed 25% of the Company’s market capitalization.

The securities issued under the Financing, and the Shares that may be issuable on exercise of the Warrants, are subject to a statutory hold period expiring on July 23, 2016.

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: Peter Espig
Contact: (604) 647-0142
peter@nicolamining.com

Disclaimer for Forward-Looking Information

Certain statements in this press release related to the Financing and the securities issuable thereunder are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the proposed use of proceeds of the Financing, resale restrictions relating to the securities issued, and the Company’s intention to close future tranches under the Financing. Such statements are subject to inherent risks and uncertainties that may cause such statements to become inaccurate, including factors that cause the Company to spend the proceeds otherwise than as contemplated in this news release, the failure of the Company to close additional tranches under the Financing, and other factors beyond the control of the Company. Such forward-looking statements should be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable laws.

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.

Nicola Mining Announces Extension of Closing of Unit Financing

Mar 11, 2016 | News Releases

VANCOUVER, B.C., March 11, 2016 – Nicola Mining Inc. (the “Company”) announces that it has extended the time for the closing of the private placement (the “Financing”) it previously announced by New Releases dated November 19, 2015, November 24, 2015, December 7, 2015 and January 21, 2016 to on or before April 11, 2016. Closing remains subject to the TSX Venture Exchange approval. The Company confirms that there is no undisclosed material information.

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: Peter Espig
Contact: (604) 647-0142
peter@nicolamining.com

Disclaimer for Forward-Looking Information

Certain statements in this press release related to the Financing and the securities issuable thereunder are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the proceeds to be raised pursuant to the Financing, the terms of the securities issuable pursuant to the Financing, resale restrictions relating to the securities to be issued, the use of proceeds of the Financing and receipt of the approval of the TSX Venture Exchange. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Company’s ability to complete the Financing, including the risk that the Financing may not be completed as expected or at all, that the security interests may not be as set out in this news release, that the proceeds of the Financing may be used other than as set out in this news release, that the TSX Venture Exchange may not approve the Financing and such other factors beyond the control of the Company. Such forward-looking statements should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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.

Nicola Mining Inc. Plans 1,500 m Drill Program at the Thule Property

Mar 3, 2016 | News Releases

TSX.V: NIM

VANCOUVER, B.C., March 3, 2016 – Nicola Mining Inc. (the “Company” or “Nicola”) is pleased to announce the submission of a Notice of Work for the 2016 Thule Property drill program. Drilling will focus on at least 2 known historic zones, the Embayment Block and the WP trenches zones. Nicola plans a 1,000 to 1,500m NQ sized diamond drill program to commence this summer.
The Embayment Block was last drill tested by Christopher James Gold Corp in 2005. Three diamond drill holes (AB-1, AB-2, and AB-3) attempted to test the zone. One of the holes, AB-2, reached a depth of 159.4 metres and was believed to be close to the mineralized zone encountered in previous drill holes in the area. 20 feet of HW casing was left behind in the hole for future entry. Nicola Mining Inc. plans on re-entering AB-2. The drill hole is expected to be drilled to a depth of approximately 500 metres.

Previous drilling, undertaken while the mine was in production, produced intersections of 490 feet of 0.41% Cu; 184 feet of 0.88% Cu; and 30 feet of 2.56% Cu. These values were reported prior to NI 43-101 standards.

The WP trenches/Marb 72 zone was last actively explored by Torwest Resources in Limited the 1960’s. Previous work consisted of detailed mapping, soil sampling, magnetometer surveys and trenching. The zone was picked out by the 2012 aeromagnetic survey as a potassic high anomaly. The 2015 Exploration Program consisted of the collection of rock grab samples within the 500-metre-long trenching corridor. Mineralized structures in the zone trend north to northwest and consist of fracture controlled malachite and chalcopyrite with epidote, biotite, orthoclase feldspar, and carbonate alteration. 5 samples collected in 2015 from the trenches returned elevated copper values with the following highlights:

  • 130515-THU-004 returning 5290 ppm Cu and 5.6 ppm Ag,
  • 130515-THU-005 returning 6830 ppm Cu,
  • 130515-THU-006 returning 5760 ppm Cu,
  • 240515-THU-002 returning 3600 ppm Cu
  • 240515-THU-003 returning 1340 ppm Cu.

Approximately 2 holes between 100-300 metres will test the WP structure.

Additional drilling is being considered at the historic Titan Queen, Marb, and Eric mineral showings. Drill depths planned at these zones will range from 100 to 300 metres. Prior to diamond drilling, geological mapping and sampling is planned in order to finalize drill targets at these sites.

Previous trenching and shallow drilling from the 1970’s by Craigmont Mines Ltd. on the Titan Queen indicated short intervals of chalcopyrite and bornite mineralization associated with tourmaline veining. Grab sample 310515-THU-009 from the historic trenches assayed 9080 ppm Cu and 85 ppm Mo.

Historical shallow drilling during the 1960’s by Torwest Resources Limited on the Marb area indicated magnetite + chalcopyrite skarn mineralization. Outcrop grab samples returned the following assay results:

  • 290515-THU-004 assayed 7330 ppm Cu and
  • 290515-THU-005 assayed 2180 ppm Cu.

The Eric Zone is considered to be an eastern extension to the main Craigmont ore body and consists primarily of magnetite + chalcopyrite skarn mineralization. Historic drilling by Craigmont Mines Ltd. from the 1970’s by Craigmont mine indicated magnetite + chalcopyrite skarn mineralization. Grab sample 290515-THU-001 taken from the 1935 shaft assayed 7990 ppm Cu.

Nicola Mining Inc. would also like to correct a few points from the July 7, 2015 news release listed below:

Original 1

There are currently no mineral resource estimates on the Thule Property. Historical resource calculations are recorded in internal memos and geological reports for Placer Development. An internal memo written by J.F. Bristow on October 30, 1985 to Craigmont Mines Ltd. reported a zone known as “Body No. 3” contains a historical estimate of 1,290,000 tons of copper grading 1.53%*. The estimate assumes a 0.7% cut-off and a 20 foot mining width between drill sections 6565E and 8015E. The material in Body No. 3 contains mineralization primarily in silicate-rich rocks.

Corrected 1

There are currently no mineral resource estimates on the Thule Property. Historical resource calculations are recorded in internal memos and geological reports for Placer Development. An internal memo written by J.F. Bristow on October 30, 1985 to Craigmont Mines Ltd. reported a zone known as “Body No. 3” contains a historical estimate of 1,290,000 short tons (1,170,268 metric tonnes) of copper grading 1.53%*. The estimate assumes a 0.7% cut-off and a 20 foot mining width between drill sections 6565E and 8015E. The material in Body No. 3 contains mineralization primarily in silicate-rich rocks.

Original 2

Additionally, J.F. Bristow reported in an internal memo on July 22, 1985 to Craigmont Mines Limited a rough calculation of 27,754,000 tonnes of copper grading 1.79% copper left behind in the sub-level cave*. The material is from the previously mined out No.1 Body and No.2 Body.

Corrected 2

Additionally, J.F. Bristow reported in an internal memo on July 22, 1985 to Craigmont Mines Limited a rough calculation of +60,000,000 pounds (1.6 million short tons or 1.45 metric tonnes of +1.5%) copper from an original reserve estimate of 27,754,000 short tons (25,178,005 metric tonnes) of copper grading 1.79% copper left behind in the sub-level cave*. The material is from the previously mined out No.1 Body and No.2 Body.

The foregoing geological disclosure has been reviewed and verified by Brian May, P.Geo., a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: Peter Espig
Contact: (604) 647-0142
peter@nicolamining.com

Cautionary Note Regarding Forward Looking Information:

This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information includes, without limitation, statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company or Siwash such as the statements that Siwash will extract mill feed from its Monument Gold Zone Property and ship this to Nicola, that Nicola will process the mill feed into concentrate and then arrange for the sale of the concentrate to smelters and third parties, the quantity of mill feed that may be extracted under the sample permit if granted, regarding the plans for storage of the mill feed, the expected grade of the mill feed, plans for allocation of costs and profit associated with mining and milling, and Nicola’s intention to progress towards operational cash flow. There are numerous risks and uncertainties that could cause actual results and the Company and Siwash’s plans and objectives to differ materially from those expressed in the forward-looking information, including the inability of the parties to complete the proposed mining and milling activities as proposed or at all, that the bulk sample permit may not be granted, that the Company may not be able to successfully negotiate agreements for the sale of the concentrates, and that the mill feed may not be of a grade or quality that is sellable, and other factors beyond the Company and Siwash’s control. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, neither the Company nor Siwash assume any obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

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.

Nicola Mining Inc. Moves Towards Commencing Milling Operations in April of 2016

Mar 1, 2016 | News Releases

TSX.V: NIM

VANCOUVER, B.C., March 1, 2016 – Nicola Mining Inc. (the “Company” or “Nicola”) is pleased to announce that it plans to recommence milling operations at its Merritt Mill property in April, 2016. Nicola’s mill property is located on the historic Craigmont Mines site, located in south central British Columbia (10 kilometers west of Merritt, BC).

Nicola’s 200 tonne per day mill will undergo modifications that will allow it to gravity separate fine free gold, prior to floating the remaining material in floatation tanks. Nicola’s mill is situated on 900 acres of freehold land, was constructed to allow floatation expansion, and is fed by a primary crushing circuit that has a 500 tonne per day capacity. The large mill building allows scalability for additional flotation tanks and gold screening units. Since May, 2010, the investment in the mill property consisted of $8.0 MM for the cost of land, $21.6 MM for the cost of the mill and related infrastructure, and $1.8 MM for the cost of the construction of a fully lined tailings facility.

The Company is also exploring options to purchase equipment that will enable it to pour doré bars onsite. Initial production is expected to commence with the processing of material from Siwash Materials Inc.’s property located in the Siwash Creek Area, located approximately 8 km northeast of Yale, B.C. and approximately 90 minutes from Nicola’s mill property located near Merritt, BC.

The Company announced the Siwash Mining and Milling Profit Share Agreement in a November 2, 2015 news release. Under the Siwash Agreement, the miner is required to use its best efforts to transport mill feed with greater than 7.08738 g/t Au to the Company’s processing facility. Shipping of previously stockpiled material is expected to commence in early April.

The date of commencing production will be subject to the receipt of the required amendment to Nicola’s mining permit.

Peter Espig, Chief Executive Officer, commented, “The modifications to the mill enabling it to accept and process gold mill feed and the ability to utilize both gravity and floatation processes that will allow it to produce doré bars and gold concentrate are significant value-added services to our toll milling counterparties. In addition, we feel are excited about the prospects to recommence milling operations in the near future.”

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: Peter Espig
Contact: (604) 647-0142
peter@nicolamining.com

Cautionary Note Regarding Forward Looking Information:

This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information includes, without limitation, statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the statements that the Company will recommence milling operations in April, that the Company will complete the required modifications to its mill, that Siwash Mineral Inc. will ship material to the Company’s processing facility in early April and that the Company will receive the necessary amendment to its mining permit. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including the inability of the Company to obtain the necessary amendment to its mining permit, the inability of Siwash Mineral Inc. to obtain all necessary regulatory approvals to allow it to extract and ship mill feed to the Company’s mill, the ability of Siwash Mineral Inc. to actually ship mill feed to the Company’s facility at all and with the agreed upon quantities and grade and the inability of the Company to raise the capital necessary for the modification to the mill and the operation of the mill and other factors beyond the Company and Siwash’s control. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, neither the Company nor Siwash assume any obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

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.