Nicola Mining Announces Closing Of Secured Convertible Debenture Offering

TSX.V: NIM
NEWS RELEASE

VANCOUVER, BC, May 20, 2020 – Nicola Mining Inc. (the “Company”) is pleased to announce that, further to its News Release of May 4, 2020, it has completed its non-brokered private placement (the “Offering”) of an aggregate principal amount of $250,000 of secured convertible debentures (the “Debentures”) of the Company. 

The aggregate gross proceeds from the sale of the Offering will be used to repay existing debentures of $250,000.

The Debentures include the following key terms:

  • the aggregate principal amount of the Debentures issued pursuant to the Offering is $250,000;
  • the Debentures bear interest at a rate of 10% per annum, which interest shall be payable annually, in cash or in common shares (each, a “Share”) of the Company, at the option of the Company;
  • the Debentures mature three years after the date of issuance (the “Maturity Date”), and the principal amount of the Debentures, together with any accrued and unpaid interest shall be payable on the Maturity Date;
  • the principal amount of the Debentures is convertible into Shares prior to the Maturity Date, at the option of the holder, at a conversion price of $0.10 per Share; and
  • the repayment of the outstanding principal and interest of the Debentures are secured against the assets of the Company.

All securities issued in connection with the Offering are subject to a statutory hold period expiring four months and one day after closing of the Offering.

An insider of the Company acquired a Debenture in the amount of $20,000 which constituted a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuance of the Debenture to the insider is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company’s shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 on the basis the exemption contained in Section 5.7(1)(a) of MI 61-101 as the amount did not exceed 25% of the Company’s market capitalization.

The Company closed on the Offering in less than 21 days to pay outstanding convertible debentures.

On behalf of the Board of Directors

Peter Espig”       
Peter Espig   
CEO & Director                     

For additional information contact:  

Peter Espig
Telephone: (604) 647-0142  
Email: peter@nicolamining.com

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.