Nicola Mining raising $3.0 million for B.C. mill expansion

Nicola Mining Inc. [NIM-TSXV] has upsized a previously announced non-brokered private placement that is now expected to raise $3.0 million, up from an earlier $1.0 million target.

The company said it may use to proceeds to expand the processing capacity of its Merritt, B.C. mill to 500 tonnes per day by purchasing and installing equipment that includes a secondary ball mill, supplementary cleaner flotation cells, and associated pumping infrastructure. Any remaining equipment requirements may be met through the refurbishment and recommissioning of existing plant and machinery, the company said in a press release. “We are very pleased with the strong market reception of this financing and the support from both existing and new investors,’’ said Nicola Mining CEO Peter Espig. “The capacity increase [from 200 tonnes per day], not only allows Nicola to benefit from record precious metal prices, but also lowers the cost of production,’’ he said.

Nicola said it intends to issue 3.33 million units priced at 90 cents each for gross proceeds of $3.0 million, including the 1.11 million units issued in the first closing

Each unit will consist of one common share and one transferable common share purchase warrant. Each warrant will entitle the holder to purchase one additional share priced at $1.10 each for three years following closing of the offering.  The expiry of the warrants may be accelerated if the closing price of the common shares on the TSX Venture Exchange is $1.70 or greater for a minimum of 10 consecutive trading days.

On Tuesday, Nicola shares edged up $0.01 to $1.00. The shares trade in a 52-week range of $1.25 and 27.5 cents.

In November 2015, Nicola became the first group in decades to consolidate ownership of the New Craigmont Project, a high-grade copper property, which covers 10,800-hectares and is located in the Highland Valley porphyry district. The project is adjacent to Highland Valley Copper, Canada’s largest copper mine. New Craigmont contains the former Craigmont Mine, which produced 34 million tonnes, grading 1.3% copper between 1961 and 1982 from underground and open pit operations. It ranked as one of North America’s highest grade copper mines.

Nicola’s other key asset is the 200-tonne-per day Merritt Mill and tailings facility. It is currently the only facility in B.C. that is permitted to accept third party gold and silver feed from throughout the province. The Merritt Mill is a unique $30 million plus milling and processing facility constructed on free-hole industrial-zoned land owned 100% by the company.

Nicola recently said it had commenced processing gold mill feed from Talisker Resources Ltd.’s [TSX-TSK, TSKFF-OTCQB] Bralorne Gold Project in British Columbia. Under an agreement announced in April, 2024, Nicola will process up to 6,300 tonnes of stockpiled material mined from the Bralorne project.

In press release on December 1, 2025, Nicola said Blue Lagoon Resources Inc. [BLLG-CSE, BLAGF-OTCQB, 7BL-FSE] has commenced transporting high-grade gold and silver millfeed to Nicola’s mill from its Dome Mountain Project.