Nicola Mining - another partner signed, solidifying the Merritt Mill’s place as BC's shared processing hub
More good news from our client Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA), which has signed a Mining and Milling Profit Share Agreement with British Columbia based Red Eye Resources Ltd. Under the deal, Red Eye may transport qualifying mineralised material to Nicola’s flagship Merritt Mill for processing. The Agreement will focus exclusively on precious-metal opportunities, with profits being shared equally between Nicola and Red Eye.
Nicola Mining’s Merritt Mill and Tailings Facility is a modern, recently upgraded, state-of-the-art 200 tonnes per day (tpd) facility, with over C$35 million invested to date, and the only facility permitted to process third-party gold and silver ores in British Columbia. The company has a number of other longstanding milling and profit share agreements with local mines, planned to take production up to nameplate capacity, which itself is being increased. This unique permitting position provides Nicola with the ability to collaborate with project owners seeking access to established processing infrastructure without the significant capital requirements and permitting timelines associated with constructing a standalone milling facility.
Merritt Mill. Source: Company
New partner Red Eye Resources is a privately held mineral exploration and project-generation company based in British Columbia. The company maintains a portfolio of precious metal prospects and is supported by a team with decades of experience in British Columbia’s mining and exploration industry.
Key comments from Peter Espig, CEO of Nicola Mining, included:
“This Agreement represents another step in Nicola’s strategy of leveraging the Merritt Mill as a centralized processing platform for high-grade precious-metal projects throughout British Columbia.”
and
“By adding Red Eye Resources’ project-generation and mining expertise with Nicola’s permitted milling infrastructure and current projects, we believe that we can supplement opportunities capable of generating near-term economic value. Nicola is pleased to support high-grade, smaller-resource projects and experienced British Columbia operators at a time when the province is placing renewed emphasis on strengthening and advancing its domestic mining industry.”
This follows last week’s news that Nicola, together with Ocean Partners UK Limited, has committed to a combined C$10 million financing for partner Blue Lagoon Resources (CSE: BLLG), with both parties putting in C$5 million. The funds raised will be used by Blue Lagoon to support the continued development and production ramp-up of Dome Mountain, with regular shipments being made from the project (located near Smithers, British Columbia) to the Merritt Mill and Tailings Facility under a toll milling agreement.
For more information on Nicola Mining visit the company’s dedicated Optimo Research page HERE
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Disclosures
Nicola Mining is a corporate client of Optimo Research Ltd.
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