{kanada_flagge}Nicola Mining (TSX. V: NIM; FRA: HLI) and Osisko Development (NYSE: ODV, TSX: ODV) are to collaborate on the processing of gold-bearing ore from Osisko’s wholly owned Barkerville Gold Mines subsidiary. Nicola announced today that both companies have signed a Memorandum of Understanding (“MOU”) to this effect. Under the terms of the MOU, an initial 15,000 tonnes of gold-bearing ore from Osisko’s stockpile will be processed at Nicola Mining’s processing plant near Merritt, British Columbia. The material will have to be transported from the Cariboo mining district in east-central BC, east and southeast of the town of Quesnel, some five and a half hours by car to Merritt.
{kanada_flagge}Nicola Mining (TSX. V: NIM; FRA: HLI) and Osisko Development (NYSE: ODV, TSX: ODV) are to collaborate on the processing of gold-bearing ore from Osisko’s wholly owned Barkerville Gold Mines subsidiary. Nicola announced today that both companies have signed a Memorandum of Understanding (“MOU”) to this effect. Under the terms of the MOU, an initial 15,000 tonnes of gold-bearing ore from Osisko’s stockpile will be processed at Nicola Mining’s processing plant near Merritt, British Columbia. The material will have to be transported from the Cariboo mining district in east-central BC, east and southeast of the town of Quesnel, some five and a half hours by car to Merritt.
Nicola has a unique milling and processing infrastructure in Merritt and is the 100 percent owner of the industrial site there. Nicola’s mill is the only facility in the province of British Columbia permitted to accept gold and silver mill tailings from third parties throughout the province. The approximately $30.0 million facility is located at the site of the historic Craigmont Copper Mine.
Both parties have already begun working together and expect to enter into a mill profit sharing agreement in the near future. The concentrate from the mill feed is expected to be sold to Ocean Partners UK Limited. A corresponding purchase agreement has already been announced on April 30, 2021.
Peter Espig, CEO of Nicola, said, “We are very pleased to have secured another solid source of feed for our mill. We have been very impressed with the team at Osisko and look forward to building a mutually beneficial relationship. We would also like to thank the Ministry of Energy, Mines and Low Carbon Innovation for facilitating an introduction.”
SUMMARY: Stable cash flow from the site businesses and from the mining and supply of gravel for road construction have enabled Nicola Mining Inc. this year to begin initial partial repayments on a long-standing convertible loan. Over the summer, the company repaid $1,329,176 of the loan, reducing the remaining note to $5,613,706. CEO Peter Espig has made it his priority to get the company debt-free. Cash flow from processing outside material at the company’s mill could further contribute to debt repayment in the future. However, the two partners probably want to wait and see how profitable the processing actually is before deciding how to split any profits. Nicola is in for an exciting 2023, having just days ago, on November 3, 2022, received a multi-year area-based exploration permit for extensive copper exploration on its 100% owned New Craigmont property. New Craigmont is adjacent to Teck Resources Ltd.’s Highland Valley Copper Mine, Canada’s largest copper mine. New Craigmont is the site of the historic Craigmont Copper Mine, which produced approximately 34 million tonnes of copper at a grade of 1.3%, making it one of the highest grade large copper mines in North American history. Despite the significant historic production, the 10,913-acre site remains largely unexplored.
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