Nicola Mining signs Mining and Milling Profit Share Agreement with Red Eye Resources

Nicola Mining Inc. [NASDAQ: NICM; TSXV: NIM; FSE: HLIA] reported that the company and Red Eye Resources Ltd. have signed a Mining and Milling Profit Share Agreement. Under the agreement, Red Eye Resources may transport qualifying mineralized material to Nicola’s Merritt mill, located near Merritt, southern British Columbia, for processing.

Red Eye Resources is a privately held mineral exploration and project-generation company based in British Columbia. The company maintains a portfolio of precious metal prospects, and it’s supported by a team with decades of experience in British Columbia’s mining and exploration industry. The agreement will focus exclusively on precious-metal opportunities, with profits generated under the arrangement to be shared equally between Nicola and Red Eye Resources.

Nicola’s Merritt Mill is the only facility in the Province of British Columbia permitted to accept third party gold and silver mill feed from throughout the province.

This unique permitting position provides Nicola with the ability to collaborate with project owners seeking access to established processing infrastructure without the significant capital requirements and permitting timelines associated with constructing a standalone milling facility.

Peter Espig, CEO of Nicola Mining, commented: “This Agreement represents another step in Nicola’s strategy of leveraging the Merritt Mill as a centralized processing platform for high-grade precious-metal projects throughout British Columbia. Red Eye Resources exemplifies an emerging and important segment of the province’s mining industry: experienced, technically capable private operators advancing projects that may not independently justify the capital investment required for dedicated processing infrastructure.

“By adding Red Eye Resources’ project-generation and mining expertise with Nicola’s permitted milling infrastructure and current projects, we believe that we can supplement opportunities capable of generating near-term economic value. Nicola is pleased to support high-grade, smaller-resource projects and experienced British Columbia operators at a time when the province is placing renewed emphasis on strengthening and advancing its domestic mining industry.”

Nicola Mining maintains a 100%-owned mill and tailings facility, located near Merritt, B.C. and 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 over 10,800 hectares along the southern end of the Guichon Batholith and is adjacent to Highland Valley Copper, Canada’s largest copper mine. The company also owns 100% of the Treasure Mountain Property, which includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares.