Nicola Mining Enters into Mining and Milling Profit Share Agreement with Red Eye Resources
Nicola expands its toll-milling model through a new profit-share deal, though the financials remain unproven and the structure is dilution-heavy.
Nicola Mining Inc. announced a Mining and Milling Profit Share Agreement with Red Eye Resources Ltd. on August 17, 2026. The agreement allows Red Eye to transport qualifying precious-metal mineralized material to Nicola’s fully permitted Merritt Mill in British Columbia. Profits generated under the arrangement will be split 50/50 between Nicola and Red Eye.
The deal focuses exclusively on gold and silver opportunities, leveraging Nicola’s unique status as the only facility in BC permitted to accept third-party precious-metal mill feed. CEO Peter Espig framed the partnership as a strategic step in centralizing high-grade precious-metal processing, targeting smaller, technically capable operators that lack capital for dedicated milling infrastructure.
Nicola Mining Inc. (NIM) has entered into an agreement that aligns with its long-publicized strategy to monetize the Merritt Mill through third-party toll milling and profit-sharing. The financial impact of the deal is deferred and diluted, as a 50/50 profit split means Nicola only captures half the margin on Red Eye’s ore. No production or revenue is expected until Red Eye delivers material.
The stock has been in a sustained downtrend from $1.30 in February 2026 to $0.65 in July 2026. This news does not address the underlying going-concern risk, negative equity, or reliance on continuous equity dilution.
Nicola Mining Inc. (NIM) owns the Merritt Mill, a fully permitted facility located near Merritt, BC. It is the only facility in British Columbia authorized to process third-party gold and silver mill feed. The site has recently been upgraded to a flotation-only circuit to improve recoveries.
The company’s New Craigmont Copper Project covers more than 10,800 hectares adjacent to Teck’s Highland Valley Copper. Exploration focus has shifted from skarn to porphyry vectoring, with 2026 drilling targets identified at Jotun and Draken.
At the Dominion Creek Gold Project, Nicola holds a 75% economic interest with an option to acquire 100%. A 10,000-tonne bulk sample is planned for 2026. A high-grade vein system was discovered during development activities.
The Treasure Mountain Silver Project is fully permitted and currently in care and maintenance. A 10-year mine lease extension has been secured through 2032, and drilling is planned for 2026.
Infrastructure developments include a gravel pit, rock quarry, and cement ready-mix plant, all of which are now completed. These assets supply Teck’s Highland Valley expansion and various provincial projects.