Nicola Mining Inc. (TSX.V: NIM) announces the signing of a Memorandum of Understanding with Osisko Development Corp (NYSE: ODV) (TSXV: ODV) for the processing of stockpiled gold mill feed from Barkerville Gold Mines Ltd., a wholly owned subsidiary of Osisko, located in the Cariboo Mining District in east-central BC, east and southeast of Quesnel. CEO Peter Espig expressed his contentment, citing the positive relationship developed with the Osisko team, and thanking the Ministry of Energy, Mines, and Low Carbon Innovation for its assistance.
Memorandum of understanding
Osisko is arranging to transport 15,000 tonnes of ore to Nicola Mining’s mill site near Merritt, BC, an area owned by the firm, with a projected expenditure of roughly $30 million. This site is also the original location of the Craigmont Copper Mine, which previously yielded ore with a 1.3% copper content. Both entities have already begun working together and assume they will sign a Milling Profit Share Agreement shortly. The concentrate generated from the mill feed will be sold to Ocean Partners UK Limited, which the Company declared that they had a purchase agreement on April 30, 2021, for gold and silver concentrate.
Nicola’s Merritt Mill is the exclusive provider of third-party gold and silver mill feed in British Columbia. It is the only facility in the province with authorization to accept such materials.