Blue Lagoon Resources Inc. has signed an amended and restated Mining and Milling Partnership agreement with Nicola Mining Inc., extending their collaboration to a 10-year term. The agreement provides a long-term processing solution for mineralized material from Blue Lagoon's recently permitted high-grade Dome Mountain Gold Project located near Smithers, British Columbia.
The extended partnership strengthens the relationship between the two companies, building on Nicola's previously announced $2 million unsecured line of credit to Blue Lagoon on June 23, 2025. Nicola Mining operates a state-of-the-art, fully permitted mill and is also an equity shareholder of Blue Lagoon. This strategic alignment ensures that Dome Mountain mineralized material will receive priority access to mill capacity, even as Nicola services other clients.
Rana Vig, President & CEO of Blue Lagoon Resources, stated that securing this long-term agreement with Nicola represents a critical step in the company's transition from development to production. The 10-year commitment ensures Dome Mountain has a reliable and efficient pathway for processing mineralized material and concentrate sales, supporting the company's ability to move quickly toward near-term cash flow while expanding the project without dilution.
Peter Espig, CEO of Nicola Mining, expressed strong support for the extended agreement, noting that as both a mill operator and equity holder in Blue Lagoon, Nicola is fully aligned with the company's success. The combination of the $2 million line of credit announced in June and the milling agreement extension demonstrates Nicola's confidence in Blue Lagoon's prospects. Nicola remains committed to processing Blue Lagoon mill feed and continues making strategic investments to support further growth.
The amended agreement follows recent milestones at Dome Mountain, including the commissioning of a water treatment plant and the commencement of underground blasting and mining operations. These developments highlight Blue Lagoon's readiness to deliver production in a responsible and efficient manner. The company has targeted first gold sales for Q4 2025 and plans to reinvest internally generated cash flow into near-mine and regional exploration beginning in H1 2026.
This long-term milling arrangement provides stability for Blue Lagoon's production timeline and reduces operational risks associated with mineral processing. The partnership represents a significant advancement in British Columbia's mining sector, where only nine full mining permits have been issued since 2015. The agreement secures processing capacity for what could become one of the province's newest gold producers, contributing to regional economic development while demonstrating the viability of strategic partnerships in the mining industry.
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