Nicola Mining Announces Closing of the Third Tranche of Unit Financing

May 2, 2016 | News Releases

TSX.V: NIM

VANCOUVER, B.C. May 2, 2016 – Nicola Mining Inc. (the “Company”) is pleased to announce that, on April 29, 2016, it completed a fourth tranche of its previously announced private placement financing (the “Financing”) as further described in its news releases of November 19, 2015, November 24, 2015, December 7, 2015 and January 21, 2016. In connection with the closing of the fourth tranche, the Company sold an aggregate of 8,318,750 units (each, a “Unit”), at a price of $0.08 per Unit, for gross proceeds of $665,500. 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. Due to strong investor demand the Company increased its original $2,250,000 financing target, as announced on October 26, 2015, to receiving gross proceeds of $2,750,000.

Proceeds from the Financing will be used for general working capital.

The Company paid cash finders fees of $9,720 and issued 119,000 share purchase warrants (the “Finder’s Warrants”) to three finders in connection with certain subscriptions in the Financing. The Finder’s Warrants have the same terms as the Warrants.

Two insiders of the Company subscribed a total of 1,348,750 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(b) and 5.7(b) of MI 61-101.

The securities issued under the Financing, and the Shares that may be issuable on exercise of the Warrants and the Finder’s Warrants, are subject to a statutory hold period expiring on August 30, 2016.

Nicola Mining Inc. is junior mining company listed on the TSX Venture and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold properties. The fully-permitted mill is able to process both gold and silver mill feed via gravity and floatation processes. The Company also owns 100% of the Treasure Mountain, its high grade silver property and a gravel pit, which is located adjacent to its milling operations.

On behalf of the Board of Directors
“Peter Espig”
Peter Espig
CEO & Director

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

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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