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Nicola Mining Announces Repayment of Prepayment to Ocean Partners and Closing of Flow Through Financing
Vancouver, British Columbia--(Newsfile Corp. - October 14, 2021) - Nicola Mining Inc. ( TSXV: ...
About this update from Nicola Mining Inc.
[{"type":"text","content":"Nicola Mining Announces Repayment of Prepayment to Ocean Partners and Closing of Flow Through FinancingVancouver, British Columbia--(Newsfile Corp. - October 14, 2021) - Nicola Mining Inc. (TSXV: NIM) (FSE: HLI), (the \"Company\" or \"Nicola\") announces it has repaid in full the $250,000 Prepayment Facility (\"Prepayment\") to Ocean Partners UK Limited[1] (\"Ocean Partners\"). The Company had announced on April 30, 2021, that it entered into a purchase contract for gold and silver concentrate with Ocean Partners. On April 27, 2021, the Company received a Prepayment of US$250,000, which was subsequently allocated towards the acquisition of 75% economic interest of the Dominion Creek Property (the \"Gold Project\")[2], which is located 43 kilometers northeast of the Town of Wells and about 110 kilometers east-southeast of Prince George and mill facility upgrades. Subsequently, the Company announced on July 9, 2021, that it had commenced processing of gold and silver mill feed at its mill, located near Merritt, British Columbia.The Company was able to repay the entire Prepayment and interest from operational cash flow from its milling operations. Nicola also announces that, further to its news release dated October 11, 2021, it has completed its flow-through private placement financing (the \"Offering\") pursuant to which it sold an aggregate of 4,375,000 flow-through shares (\"FT Shares\") at a price of price of $0.12 for gross proceeds of $525,000. The shares are issued on a \"flow-through\" basis pursuant to the Income Tax Act (Canada) and the Company paid $34,999.98 in finder's fees for certain subscriptions in the Offering. All securities issued in connection with the Offering are subject to a statutory hold period expiring February 15, 2022. An insider of the Company acquired 208,336 FT Shares in the Offering which constituted a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The issuance to the insider is exempt from the valuation requirement of MI 61-101 by the virtue of the exemption contained in section 5.5(b) as the Company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) as the value of the Units did ...