Nicola Mining Inc. has signed a Mining and Milling Profit Share Agreement with Red Eye Resources Ltd. allowing Red Eye Resources to transport qualifying mineralized material to the Merritt Mill for processing. Under the agreement, any profits generated from the arrangement will be shared equally between the two companies, focusing exclusively on precious-metal opportunities.

The Merritt Mill, located near Merritt, British Columbia, operates as the only facility in the province permitted to accept third-party gold and silver mill feed from across the region. This unique permitting position enables project owners to access established processing infrastructure without facing the substantial capital requirements and lengthy permitting timelines needed to construct a standalone facility.

Nicola has previously established similar milling and processing partnerships at the facility with other regional operators, including Blue Lagoon Resources and Talisker Resources. Meanwhile, Blue Lagoon Resources is advancing mine development activities at the Dome Mountain Gold and Silver Project to increase production toward a target of 150 to 200 tonnes per day.

This Agreement represents another step in Nicola's strategy of leveraging the Merritt Mill as a centralized processing platform for high-grade precious-metal projects throughout British Columbia. 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.

By adding 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. Nicola is pleased to support high-grade, smaller-resource projects and experienced British Columbia operators at a time when the province is placing renewed emphasis on strengthening and advancing its domestic mining industry.

— Peter Espig, CEO of Nicola Mining Inc.

Read the full announcement: Nicola Mining Enters into Mining and Milling Profit Share Agreement with Red Eye Resources