Nicola MiningInc. said March 30 that it has signed an agreement with 1050214B.C. Ltd. to expand Nicola's gravel business, expanding the current gravel pitpermit in British Columbia from 60,000 tonnes per annum to 200,000 tonnes perannum.
The two companies will form a joint venture and then willwork to increase the amount of aggregate under the current gravel pit permit.The joint venture will conduct a review of the property and submit a notice ofwork and reclamation program. Until the permits are approved, NorgaardReady-Mix Ltd. will remain the exclusive miner of aggregate under the permit.
The agreement allows the joint venture partner to acquire a50% interest in the property for about C$1.1 million payable upon certainmilestones being achieved. It has agreed to make an initial contribution ofC$175,000 by April 15, which the joint venture will use to conduct a full sitereview and receive operational permits.
Norgaard has a royalty agreement with Nicola, and willcontinue using the property to supply products to the Interior of BritishColumbia.
Nicola has also entered into an investor relations agreementwith Tribeca Capital Partners Inc., which will undertake a marketing andinvestor communications program for Nicola.