- Nicola Mining (NIM) has signed a purchase contract with Ocean Partners UK Limited
- Ocean Partner is a company that provides global trading services to miners, smelters, and refiners
- The company expects to begin milling activities at its Merritt Mill
- The prepayment allows Nicola to undertake capital expenditure investments and bridge the period between restarting the mill and cash flow
- Nicola Mining is up 13.33 per cent, with shares trading at C$0.17 at 11:43 am ET
Nicola Mining (NIM) has signed a purchase contract with Ocean Partners UK Limited.
Ocean Partner is a company that provides global trading services to miners, smelters, and refiners.
The purchase contract includes a revolving US$500,000 prepayment provision allowing the company to request an advance prepayment for the purpose of working capital.
The company expects to begin milling activities at its Merritt Mill, having reached the agreement.
On April 26, 2021, the company requested a prepayment of $250,000. Funds are expected to be allocated towards preparing the mill for production and potential acquisitions.
The company will make interest payments for the first six months and repay the principal in October of 2021, at which time the company may again utilize the full $500,000 prepayment provision.
The non-dilutive prepayment allows Nicola to undertake capital expenditure investments and bridge the period between restarting the mill and cash flow. It is not a net smelter return (NSR) and there is no obligation by the company to continue payments once the drawn down amount has been repaid.
“We are very excited about the opportunity to work with Ocean Partners and the access it provides to non-dilutive funding options, as well as mitigating the requirement to enter into an NSR agreement. We also recognize the potential of project-consolidation that our fully-permitted and modern $30.0 million mill provides, but also remain cognizant that the company’s greatest long term value lies in our wholly-owned New Craigmont Copper Project, upon which we are about to commence our 2021 Exploration Program,” said Nicola CEO Peter Espig.
Nicola Mining is up 13.33 per cent, with shares trading at C$0.17 at 11:43 am ET.