Blue Lagoon Secures 10-Year Milling Agreement for Dome Mountain Gold Project

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. This 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 represents a significant strategic development for both companies, building on Nicola Mining'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, creating strong alignment between the two companies. This strategic relationship 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, emphasized the importance of this agreement, stating that securing this long-term partnership with Nicola is 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 to shareholders.

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 to make strategic investments to support further growth.

The amended agreement builds on 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, with plans to reinvest internally generated cash flow into near-mine and regional exploration beginning in H1 2026.

This long-term milling agreement provides stability and certainty for Blue Lagoon's production plans, reducing operational risks associated with mineral processing. The partnership strengthens Blue Lagoon's position in the competitive mining sector by ensuring consistent access to milling capacity, which is often a bottleneck for mining operations. The extended agreement also signals confidence in the Dome Mountain project's viability and the broader gold mining industry in British Columbia.

The company also announced it has granted 3.5 million options to consultants and advisors with an exercise price of $0.57, a five-year term, and immediate vesting. This move aligns with the company's growth strategy and recognition of key contributors to its development progress. View the original release on https://www.newmediawire.com.