Nicola Mining increases private placement to $3-million

Executive Summary

• Nicola Mining Inc. has upsized its previously announced non-brokered private placement from $1 million to $3 million, driven by strong support from existing shareholders and new institutional investors.
• The company will issue 3,333,334 units at $0.90 per unit, with gross proceeds of up to $3 million, to fund the expansion of milling capacity and upgrade its milling facility.
• Proceeds will specifically target the purchase and installation of milling equipment, including a secondary ball mill and cleaner flotation cells, aiming to increase processing capacity to approximately 500 tonnes per day.

Key Details

• Transaction Structure: Non-brokered private placement upsized from $1 million to $3 million.
• Units Issued: Aggregate of 3,333,334 units (including 1,111,112 units from the first closing).
• Price: $0.90 per unit.
• Gross Proceeds: Up to $3,000,000.
• Warrant Terms: Each unit includes one transferable common share purchase warrant.
  • Exercise Price: $1.10 per share.
  • Term: Three years following closing.
  • Acceleration Clause: Warrants may be accelerated if the closing price of common shares on the TSX Venture Exchange is $1.70 or greater for a minimum of 10 consecutive trading days.
• Use of Proceeds:
  • Purchase and installation of milling equipment to expand processing capacity to ~500 tonnes per day.
  • Addition of a secondary ball mill.
  • Supplementary cleaner flotation cells and associated pumping infrastructure.
  • Refurbishment and recommissioning of existing plant and machinery.
  • Procurement of spare bowl and mantle assemblies for crusher maintenance.
  • General operations and corporate working capital.
• Regulatory Conditions: Completion is subject to exchange approval. Securities are subject to a statutory holding period of four months and one day. Insider participation is exempt from formal valuation and minority shareholder approval requirements under MI 61-101.

Notable Quotes

• "We are very pleased with the strong market reception of this financing and the support from both existing and new investors... this upsized placement allows us to expedite throughput expansion with the immediate ball mill purchase, invest directly in critical infrastructure and purchase key spare parts that will minimize downtime for repairs. The capacity increase not only allows Nicola to benefit from record precious metal prices but also lowers the cost of production." — Peter Espig, CEO