(via Thenewswire.ca)
VANCOUVER, B.C. / TheNewswire / August 25,
2016 – Nicola Mining Inc. (the “Company”) is pleased to announce
that, on August 24, 2016, it completed a non-brokered private placement financing (the
“Financing”) as further described in its news release of August 23,
2016. In connection with the closing, the Company sold an aggregate of 18,337,665 units (each, a “Unit”), at a price of $0.12 per Unit, for gross proceeds of $2,200,519.80. Each Unit consists of one
common share of the Company (each, a “Share”) and one share purchase
warrant (each, a “Warrant”). Each Warrant is exercisable into one
additional Share at a price of $0.18 per Share for a period of three years from the date of issuance.
Proceeds from the Financing will be used for general working capital.
The Company paid cash finders fees of $29,792 and issued 248,266 share purchase warrants (the
“Finder’s Warrants”) to three finders in connection with certain
subscriptions in the Financing. The Finder’s Warrants have the same terms as the Warrants.
Insiders of the Company were issued an aggregate of 933,333 Units under the Financing, which
constituted a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuance to insiders is exempt from the valuation requirement of MI 61-101 by 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(a) of MI 61-101 in that the fair
market value of the consideration of the shares issued to the related parties did not exceed 25% of the Company’s market
capitalization.
The securities issued under the Financing, and the Shares that may be issuable on exercise of the
Warrants and the Finder’s Warrants, are subject to a statutory hold period expiring on December 25, 2016.
On behalf of the Board of Directors
“Peter
Espig”
Peter Espig
CEO & Director
For additional information
Contact: Peter Espig
Phone: (604) 647-0142
Email: peter@nicolamining.com
Disclaimer for Forward-Looking Information
Certain statements in this press release related to the Financing and the securities issuable
thereunder are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical
facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties
which could cause actual results to differ materially from the future results expressed or implied by the forward-looking
statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”,
“could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar
variations. Forward-looking statements in this news release include statements regarding the proposed use of proceeds of the
Financing and the resale restrictions relating to the securities issued. Such statements are subject to inherent risks and
uncertainties that may cause such statements to become inaccurate, including factors that cause the Company to spend the proceeds
otherwise than as contemplated in this news release, and other factors beyond the control of the Company. Such forward-looking
statements should be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events
or otherwise, other than as required by applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
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