Nicola Mining (TSX-V:NIM) has entered into a mining and milling profit share agreement with privately held Red Eye Resources for the Merritt Mill in British Columbia, Canada.
As part of the deal, Red Eye may transport qualifying mineralised material to the Merritt Mill for processing. Nicola Mining’s Merritt Mill is the only facility in British Columbia permitted to accept third-party gold and silver mill feed.
This unique permitting position provides Nicola with the ability to collaborate with project owners seeking access to established processing infrastructure without the significant capital requirements and permitting timelines associated with constructing a standalone milling facility.
CEO Peter Espig says this agreement represents another step in the company’s strategy of leveraging the Merritt Mill as a centralised processing platform for precious metal projects throughout British Columbia.
“By [combining] Red Eye Resources’ project generation and mining expertise with Nicola’s permitted milling infrastructure and current projects, we believe that we can supplement opportunities capable of generating near-term economic value,” Espig says.
“Red Eye Resources exemplifies an emerging and important segment of the province’s mining industry: experienced, technically capable private operators advancing projects that may not independently justify the capital investment required for dedicated processing infrastructure.”
Nicola Mining is a dual-listed junior mining company that maintains a wholly owned mill and tailings facility, located near Merritt, British Columbia. The facility is currently capable of processing 200 tonnes per day, soon to be 500 tonnes per day, through crushing, grinding, and flotation.
Write to Aaliyah Rogan at Mining.com.au
Images: Nicola Mining
