Nicola Mining (NIM-V) Aug 25, '16 is pleased to announce that, on August 24, 2016, it completed a non-brokered private placement 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, 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 and one share purchase 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
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