Nicola Mining Inc. enters into a second mining and milling profit share agreement
VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 19, 2015) – Nicola Mining Inc. (the "Company" or "Nicola")(TSX VENTURE:NIM) is pleased to announce that it has entered into a second Mining and Milling Profit Share Agreement (the "Clibetre Agreement") with Clibetre Exploration Inc. ("Clibetre" or the "Miner"). Nicola Mining Inc.'s first Mining and Milling Profit Share Agreement was announced with High Range Exploration on February 25, 2015.
Under the Clibetre Agreement the Miner plans to ship mill feed that has already been extracted and is currently being stored on its property, which is located approximately 25 kilometres due west of the city of Courtenay, B.C. The mill feed is expected to be processed for gold, silver, copper, lead and zinc. The groups will initially conduct a test analysis on the Miner's high grade gold stockpile in order to confirm grades and recovery, as well as to test recent upgrades conducted at Nicola's mill.
Under the Clibetre Agreement, the Miner plans ship stored mill feed from its wholly-owned Mt. Washington Property and ship it to Nicola for processing. Nicola intends to process the mill feed into concentrate for further shipping to a smelter or third party for sale, subject to agreements for the sale of the concentrate being entered into with smelters or third parties.
Under the Agreement, Clibetre will be responsible for all costs associated with extraction and transportation to Nicola's processing facility, which is located near Merritt, B.C., while Nicola will be responsible for all costs associated with milling operations. Upon repayment of costs, according to terms of the Agreement, the parties will equally distribute the remaining proceeds from the sales of concentrates.
Peter Espig, Chief Executive Officer, commented, "Nicola Mining Inc. continues to increasingly leverage the value of its centrally located state-of-the-art mill and lined tailings facility and moving the Company towards positive cash flow."
The Company also announces that it will grant to certain directors, management and employees an aggregate of 2,690,000 options exercisable at a price of $0.06 each until June 19, 2019, pursuant to the conditions of the Company's Stock Option Plan.
On behalf of the Board of Directors
CEO & Director
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 Clibetre such as the statements that Clibetre will extract mill feed from its Mt. Washington 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 Clibetre'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 Clibetre'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 Clibetre 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.