VANCOUVER, BC, November 18, 2021 – Nicola Mining Inc. (the “Company”) announces that, further to its News Release of November 16, 2021, it wishes to amend the price at which it intends to issue common shares (each, a “Share”) in consideration of the payment of all of the interest (the “Interest”) owing on the secured convertible debentures (the “Debentures”) issued on November 21, 2019 from $0.12 per Share to $0.10 per Share.
Accordingly, the Company intends to issue 6,942,882 Shares at a price of $0.10 per Share in settlement of Interest owing of $694,288.20 (the “Debt Settlement”).
An Insider of the Company will be issued 6,250,000 Shares pursuant to the Debt Settlement, which will constitute a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The intended issuance 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 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the Shares to be issued to the related party will not exceed 25% of the Company’s market capitalization. The Company will close on the payment of the Interest in Shares in less than 21 days as the payment of Interest is due pursuant to the terms of the Debentures.
The Debt Settlement is subject to TSX Venture Exchange approval. The Shares will be subject to a statutory hold period expiring on the date that is four months and one day after the closing of the Debt Settlement.
On behalf of the Board of Directors
CEO & Director
For additional information
Contact: Peter Espig
Phone: (778) 385-1213
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.