VANCOUVER, B.C. December 2, 2016 – Nicola Mining Inc. (the “Company”) is pleased to announce that it will be conducting a flow-through financing pursuant to which the Company will issue up to 3,500,000 flow-through units (each, a “Flow-Through Unit”) at a price of $0.20 per Flow-Through Unit for gross proceeds of up to $700,000 (the “Offering”).
Each Flow-Through Unit will consist of one common share of the Company (each, a “Flow-Through Share”), issued on a “flow-through” basis pursuant to the Income Tax Act (Canada) and one-half of one transferable common share purchase warrant (each whole warrant, a “Flow-Through Warrant”), with each Flow-Through Warrant entitling the holder to acquire one common share of the Company (each, a “Warrant Share”) at a price of $0.35 per Warrant Share for a period of three years from the closing of the Offering.
Finders’ fees may be payable in connection with the Offering in accordance with the policies of the TSX Venture Exchange (the “Exchange”).
All securities issued in connection with the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Completion of the Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the Exchange.
The aggregate gross proceeds from the sale of the Offering will be used for further exploration on its wholly-owned Thule Project, which covers an area of 10,084 hectares along the southern end of the Guichon Batholith and is adjacent to Teck Resources Ltd.’s Highland Valley Copper, Canada’s largest copper mine.
In its news release of September 7, 2016, the Company announced significant copper mineralization had been intersected in its 2016 drilling program of 1,084 metres in 5 holes. As highlighted in the news release, copper mineralization was intersected in all 5 holes, highlighted by an intersection of 1.11% copper over 85.92 metres in THU-002, through the Embayment Zone, located approximately 1 km northwest of the past-producing Craigmont Mine.
The Company hopes to increase the scale of exploration and will focus on two key zones, the Embayment Zone and the Titan Queen Zone.
Chalcopyrite mineralization and associated skarn alteration consisting of magnetite, garnet, actinolite and epidote is equivalent to the western side of the Craigmont skarn zone. Drill hole S-100, which was drilled by Craigmont Mines Limited in 1978, intersected 0.47% copper over 149.36 metres (from historical data and non-compliant with the reporting standards required by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)). The Embayment Zone is a known continuation of the Craigmont Zone, as highlighted in Figure 2 of the Company`s September 7, 2016 news release. The exploration program will focus on westward expansion of the skarn as THU-002 is believed to be on the eastward boundary of the zone.
Titan Queen Zone
The 2016 exploration program on the Titan Queen comprised of 2 holes, THU-003 and THU-004, both of which encountered chalcopyrite-mineralized hydrothermal breccia emplaced into propylitically altered, equigranular and fine-grained quartz diorite. The Company is extremely encouraged by its geological mapping program, which was completed on November 1, 2016. The zone is defined by a northeast-trending domain of massive magnetite-quartz – chalcopyrite – bornite veining, including brecciated sections with associated chlorite alteration. The size of the domain is 500 metres by 150 metres as a series of 1 to 10 metre-wide steeply dipping, parallel and possibly inter-fingering ribbons through host diorite. Mapping also defined a chlorite alteration zone of 1.0 km by 700 metres surrounding the magnetite veins. Mineralization and alteration is indicative of a porphyry zone and is likely part of a larger hydrothermal system. Its location is within the Guichon Batholith which home to the largest copper mine in Canada.
The scientific and technical content of this press release was reviewed by Mr. Chris LeClair, G.I.T. and verified by Mr. Kevin Wells, P.Geo, who is classified as a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange, and has a fully-permitted 200 tonne per day custom mill that recommenced operations in June 2016. Its 100% owned state-of-the-art mill and tailing facility, located near Merritt, British Columbia, is capable of processing both gold and silver mill feed via gravity and floatation processes. The Company has 100% of the Thule Copper property covering 10,084 hectares along the southern end of the Guichon Batholith. In addition, the Company also owns 100% of Treasure Mountain, its high grade silver property, and a gravel pit, which is located adjacent to its milling operations.
On behalf of the Board of Directors
CEO & Director
For additional information contact:
Telephone: (778) 385-1213
Email: [email protected]
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.