Nicola Mining Upsizes Financing with Proceeds to Be Used to Expand Capacity of and Upgrade Its Milling Facility
Nicola Leverages Strategic Milling Hub Status to Fast-Track Capacity Expansion via Upsized C$3M Financing
On January 13, 2026, Nicola Mining announced it has upsized its private placement to C$3,000,000 due to strong market demand. The financing consists of units priced at $0.90, including one common share and one-half of one warrant (exercise price $1.10 for 36 months). The proceeds are earmarked for immediate operational expansion at its Merritt Milling Facility, specifically for the purchase of a secondary ball mill, cleaner flotation cells, and pumping infrastructure to increase throughput capacity. CEO Peter Espig noted that this expansion is intended to lower production costs and maximize returns on high-grade material currently being processed.
The news is Material - Positive for three primary reasons: - Demand Outstripping Supply: The decision to upsize the financing indicates significant institutional and investor appetite, likely buoyed by the company’s recent transition into a revenue-generating producer (confirmed by the US$1.0M payment from Blue Lagoon on January 5, 2026). - Operational De-risking: By moving from a "campaign milling" model to a "capacity expansion" model, the company is shifting from being a project-dependent junior to a critical infrastructure provider for the British Columbia mining sector. - Efficiency Gains: The acquisition of a secondary ball mill and cleaner cells directly addresses the bottleneck of processing capacity, allowing Nicola to service more third-party contracts (like those with Blue Lagoon and potentially others) while processing its own high-grade material from Dominion Creek.
Nicola Mining is a junior mining and processing company with a unique "milling-centric" business model. Its flagship asset is the 100%-owned Merritt Mill and Tailings Facility, the only site in B.C. permitted to process third-party gold and silver ore from across the province. - New Craigmont (Copper): A 10,800-hectare property adjacent to Teck’s Highland Valley Copper, targeting high-grade skarn and porphyry copper. - Dominion Creek (Gold): A high-grade gold project (75% interest) where recent sampling returned grades up to 113 g/t Au. - Treasure Mountain (Silver): A permitted, past-producing silver mine currently on care and maintenance.