Nicola Mining Inc. Signs Letter of Intent with Nittetsu Mining Co. Ltd. for Exploration at New Craigmont Copper Project
Nicola Mining Inc. Signs Letter of Intent with
Nittetsu Mining Co. Ltd. for Exploration at New
Craigmont Copper Project
Vancouver, British Columbia--(Newsfile Corp. - September 6, 2023) - Nicola Mining Inc.
(TSXV: NIM)
(FSE: HLI)
, (the "
Company
" or "
Nicola
") is pleased to announce that it has signed a non-binding letter
of intent ("
LOI
") with Nittetsu Mining Co. Ltd. ("
Nittetsu
")
1
, a public arm's length company based in
Japan,
whereby Nicola would agree to establish a joint venture entity with Nittetsu in respect of the
Company's wholly-owned New Craigmont Copper Project (the "
Project
") in exchange for the payment
by Nittetsu of certain exploration costs and other consideration, which could total up to $25.0 MM upon
completion (the "
Transaction
").
The LOI is a non-binding agreement which sets out the principal terms on which the parties have agreed
to complete the Transaction. Subject to satisfactory due diligence and successful additional
negotiations, the parties intend to enter into a definitive agreement with respect to the Transaction (the
"
Definitive Agreement
") on or before December 23, 2023.
During the period until the entry into the
Definitive Agreement, the parties have agreed that their geological and technical teams will work closely
together reviewing and organizing Project data, which includes the historic mine dumps, the historic
mine's skarn mineralization, and current porphyry targets.
The total aggregate $25.0 MM contribution by Nittetsu would value the New Craigmont Project at $62.5
MM would garner Nittetsu a 40% interest in the New Craigmont Copper Project. Investment would occur
directly into the Project Upon execution of the Definitive Agreement, Nittetsu expects to invest in two
stages:
1
.
Optional Phase - 1st Stage
:
During the Optional Phase, Nittetsu may contribute an aggregate of
$10.0 MM in order to achieve a 20% ownership in the Project, which would be reflected as equity
in a new company (the "
Project Entity
") to be established by the parties in respect of the
Transaction and the Property. Nittetsu also maintains the right to discontinue its investment in the
Project.
If Nittetsu opts not to proceed to the 2
nd
Stage, its equity in the Project Entity would be
cancelled and returned to treasury.
The 1
st
Stage is expected to take approximately three years, at
which time Nittetsu, at its sole discretion has the option to move forward to the 2
nd
Stage.
2
.
FS Stage - 2nd Stage
:
The two year FS Stage will focus on the feasibility of the Project with the
goal of moving into extraction of copper from the Project, including from the historic waste dumps.
Upon completion of the FS Stage and a total contribution of at least $15.0 MM, Nittetsu will have
earned a 40% interest in the Property, reflected as equity in the Project Entity.
Under a Definitive Agreement, Nittetsu will act as a sales agent for the 100% copper production or can
tag along with Nicola if the latter receives superior pricing for production offtake.
Peter Espig, CEO of Nicola, commented, "We are very excited to be working with Nittetsu, which brings
a great deal of experience and credibility to our New Craigmont Copper Project. We believe that the
post-money valuation of the Project will be augmented with the capital and are very excited to commence
working together.
In addition, the contributions does not increase the outstanding shares of the Company
and excludes our fully permitted silver mine, Treasure Mountain, and the Merritt Milli Facility.
We are also
very excited to know that the Project is Nittetsu's first foray into a British Columbia based copper
project."
Nittetsu Mining Co., Ltd. is a diversified company that was founded in 1899 and currently has operations
globally. Current businesses include: mining and distributing industrial minerals; purchasing and
distributing coal and petroleum products; developing and distributing equipment, machinery and
environment-related products; real estate; power generation using renewable energy; the supply and
sale of electricity.
Nittetsu operates Atacama Copper Mine and currently in the process of developing a
second copper mine in the Republic of Chile.
Qualified Person
Kevin Wells, P.Geo, a consulting geologist to the Company, is the independent qualified person as
defined by National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
for the technical
disclosure contained in this news release.
About Nicola Mining
Nicola Mining Inc. is a junior mining company listed on the TSX Venture and Frankfurt Exchanges that
maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia. It has signed
Mining and Milling Profit Share Agreements with high grade gold projects. Nicola's fully permitted mill
can process both gold and silver mill feed via gravity and flotation processes.
The Company owns 100% of the New Craigmont Project, a high-grade copper 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.
The Company also owns
100% of the Treasure Mountain Property, consisting of 29 mineral tenures covering 2178 hectares (ha)
and a mining lease covering 335 ha.
On behalf of the Board of Directors
"
Peter Espig
"
Peter Espig
CEO & Director
For additional information
Contact:
Peter Espig
Phone: (778) 385-1213
Email:
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.
Forward-Looking Statements:
This news release contains forward-looking statements and forward-looking information (collectively,
"forward-looking statements") within the meaning of applicable Canadian legislation. Forward-looking
statements are typically identified by words such as: "believes", "expects", "anticipates", "intends",
"estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such
words and phrases and similar expressions, which, by their nature, refer to future events or results that
may, could, would, might or will occur or be taken or achieved. All statements in this news release that
are not purely historical are forward-looking statements and include statements regarding beliefs,
plans, expectations and orientations regarding the future including, without limitation: the entry into the
Definitive Agreement on the terms announced in this news release, or at all, that the Transaction will
occur on the terms announced or at all; the proposed total contributions to be made by Nittetsu under
the Transaction; and the perceived benefits of the Transaction. Although the Company believes that
such statements are reasonable and reflect expectations of future developments and other factors
which management believes to be reasonable and relevant, the Company can give no assurance that
such expectations will prove to be correct. In making the forward-looking statements in this news
release, the Company has applied several material assumptions, including without limitation, that it
and Nittetsu will obtain the required approvals for the Transaction, market fundamentals will support
the viability of mining exploration, the receipt of any necessary permits, licenses and regulatory
approvals in connection with the future exploration of the Project, the availability of any financing
required for the Company to carry out its planned future activities, and the availability of and the ability
to retain and attract qualified personnel. Other factors may also adversely affect the future results or
performance of the Company, including general economic, market or business conditions, future
prices of minerals, changes in the financial markets and in the demand for minerals, changes in laws,
regulations and policies affecting the mineral exploration industry, as well as the risks and
uncertainties which are more fully described in the Company's annual and quarterly management's
discussion and analysis and in other filings made by the Company with Canadian securities
regulatory authorities under the Company's SEDAR+ profile. No assurance can be given that any of
the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits
the Company will obtain from them. Readers are cautioned that forward-looking statements are not
guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance
on forward-looking statements due to the inherent uncertainty of such statements. The Company does
not undertake any obligation to update such forward-looking information whether because of new
information, future events or otherwise, except as expressly required by applicable law.
1
LOI executed on August 30, 2023
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/179630