Nicola Mining Closes Flow-Through Financing

TSX.V: NIM
NEWS RELEASE

VANCOUVER, BC, December 19, 2019 – Nicola Mining Inc. (the “Company”) is pleased to announce that, further to its News Release of December 13, 2019, that it has closed its flow-through private placement financing (the “Offering”) pursuant to which it sold an aggregate of 3,520,000 common shares (each, a “Share”), at a price of $0.10 per Share, for gross proceeds of $352,000.  The Offering was oversubscribed by $2,000.  Each Share was issued on a “flow-through” basis pursuant to the Income Tax Act (Canada). 

The Company paid cash finder’s fees of $24,290.

All securities issued in connection with the Offering are subject to a statutory hold period expiring April 19, 2020.

An insider of the Company acquired 50,000 Shares in the Offering which constituted a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).  The issuance to the insider is exempt from the valuation requirement of MI 61-101 by the 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 by virtue of the exemption contained in Section 5.7(1)(a) as the value of the Shares did not exceed 25% of the Company’s market capitalization.

The aggregate gross proceeds from the sale of the Offering will be used for further exploration on the Company’s wholly-owned New Craigmont Property, 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.

None of the securities sold in connection with the Offering are registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Company has received a 30-day extension from the TSX Venture Exchange to close its convertible debenture financing announced on November 13, 2019.

On behalf of the Board of Directors

Peter Espig” 
Peter Espig        
CEO & Director                         

For additional information contact:    

Peter Espig
Telephone: 778.385.1213  
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.