- Nicola Mining (NIM) has signed a strategic mining and milling profit share agreement with private company High Range Exploration
- High Range will extract mill feed from its Dominion Creek property, which will then be shipped to Nicola’s mill for processing
- Nicola will then be responsible for negotiating the sale of concentrate to a smelter or third-party purchaser
- The two companies signed a similar agreement in early 2015, which fell through after High Range undertook a corporate restructuring
- Nicola Mining (NIM) is currently up 3.13 per cent to C$0.16 per share at 3:24pm EDT
Nicola Mining (NIM) has signed a strategic mining and milling profit share agreement with private company High Range Exploration.
Under the terms of the deal, High Range will be tasked with extracting mill feed from its wholly owned Dominion Creek property in British Columbia, located 43 kilometres northeast of the town of Wells and roughly 110 kilometres east-southeast of Prince George.
This mill feed will then be shipped to Nicola Mining’s facility near Merritt for processing.
Over the last three months, the two companies have been working collaboratively to advance the Dominion Creek property towards a 10,000 tonne bulk sample permit, the feed from which will be initially used for processing.
Prior to shipping, this mill feed will be tested to confirm grades of at least 15.552 grams per tonne of gold equivalent.
Once a sufficient stockpile has been achieved and the material sent for processing, Nicola Mining will then be responsible for negotiating the sale of the concentrate to a smelter or third-party buyer.
Cost wise, High Range will be responsible for all expenses associated with extraction and transportation processes, while Nicola Mining will assume all costs associated with milling activities.
The proceeds from the sale of the concentrate will then be distributed equally between the two companies.
Nicola Mining and High Range had struck a similar agreement in early 2015, which fell through after the later undertook a corporate restructuring.
Peter Espig, CEO of Nicola Mining, said he is pleased to have rekindled the partnership.
“We are very excited to work closely with High Range again. We believe High Range to be a well-run company that owns 100 per cent of a very intriguing property with high-grade gold potential,” he added.
Nicola Mining (NIM) is currently up 3.13 per cent and is trading at C$0.16 per share at 3:24pm EDT.