Blue Lagoon Extends Milling Agreement with Nicola Mining to 10 Years, Securing Long-Term Processing of Dome Mountain Mineralized Material
(TheNewswire)
September 29, 2025 – TheNewswire - Vancouver,British Columbia – Blue Lagoon Resources Inc. (“BlueLagoon” or the “Company”)(CSE: BLLG; OTCQB:BLAGF;FSE: 7BL) is pleased to announce that it has signed an amendedand restated Mining and Milling Partnership agreement with NicolaMining Inc. (“NicolaMining” or “Nicola”) (TSXV: NIM), extending the partnership to a 10-year term. Theagreement secures a long-term processing solution for mineralizedmaterial from the Company’s recently permitted high-grade DomeMountain Gold Project (“DomeMountain”), located near Smithers, British Columbia.
Nicola Mining operates a state-of-the art, fully permitted mill and isalso an equity shareholder of Blue Lagoon. Today’s announcement further strengthens the long-standingrelationship between the two companies, building on Nicola’spreviously announced $2 million unsecured line of credit to BlueLagoon on June 23, 2025. At that time, Nicola’s CEO emphasized theshared vision and strategic alignment between the two companies — asentiment that continues to be demonstrated through this 10-year tollmilling extension. This strategic alignment providesconfidence that Dome Mountain mineralized material will always begiven priority access to mill capacity, even as Nicola services otherclients.
“Securing this long-term agreement with Nicola is a critical step inour transition from development to production,” said RanaVig, President & CEO of Blue Lagoon Resources.“This 10-year commitment ensures Dome Mountain has a reliable andefficient pathway for processing mineralized material and concentratesales, underscoring our ability to move quickly toward near-term cashflow as we work to expand our project, all without Company’sdilution. Our partnership with Nicola has grownconsiderably over the past year, and this latest agreement is atestament to that strengthened relationship.”
Peter Espig, CEO of Nicola Mining said, “we areextremely pleased to extend our agreement with Blue Lagoon”. “Asboth a mill operator and an equity holder in Blue Lagoon, we are fullyaligned with the Company’s success. Our $2 million line of credit,announced in June, together with today’s milling agreementextension, further demonstrates Nicola’s confidence in Blue Lagoon. Nicola is committed to processing Blue Lagoon mill feed andcontinues to make strategic investments to support furthergrowth.”
The amended agreement builds on the Company’s recent milestones atDome Mountain, including the commissioning of its water treatmentplant and the commencement of underground blasting
and mining operations. Together, these achievements highlight BlueLagoon’s readiness to deliver production in a responsible andefficient manner.
The Company also announces that it has granted 3.5million options to consultants and advisors of the Company. Theoptions have an exercise price of $0.57, a five-year term and vestimmediately.
For further information, please contact:
Rana Vig
President and CEO
Telephone: 604-218-4766
Email: ranavig@bluelagoonresources.com
About Blue Lagoon ResourcesInc.
Blue Lagoon Resources Inc. (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is aCanadian-based, well-funded, growth-oriented mining company focused onadvancing its 100% owned Dome Mountain Gold Project in BritishColumbia. Led by a team with deep mining and finance experience, theCompany operates in one of the world’s most attractive miningjurisdictions.
In February 2025, Blue Lagoon achieved a major milestone with thegranting of a full mining permit - one of only nine issued in BritishColumbia since 2015 - and has since commenced underground miningoperations. Mineralized material from Dome Mountain will be processedunder a long-term toll milling agreement with Nicola Mining, withfirst gold sales targeted for Q4 2025. Beginning in H1 2026, theCompany plans to reinvest internally generated cash flow intonear-mine and regional exploration to further expand its resourcebase.
With a strong commitment to sustainability, community, and FirstNation engagement, Blue Lagoon’s objective is to become aprofitable, cash-flowing gold producer while creating lasting valuefor shareholders and stakeholders alike.
The Company is not basing its production decision atDome Mountain on a feasibility study of mineral reserves demonstratingeconomic and technical viability. The production decision is based onhaving existing mining infrastructure, past bulk sampling andprocessing activity, and the established mineral resource. TheCompany understands that there is increased uncertainty, andconsequently a higher risk of failure, when production is undertakenin advance of a feasibility study.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Statement Regarding Forward-LookingInformation: This release includes certain statements that may bedeemed "forward-looking statements". All statements in thisrelease, other than statements of historical facts, that addressevents or developments that Blue Lagoon Resources Inc. (the"Company") expects to occur, are forward-looking statements.Forward-looking statements are statements that are not historicalfacts and are generally, but not always, identified by the words"expects", “targets”, "plans","anticipates", "believes", "intends","estimates”, “projects", "potential",“mine”, “production” and similar expressions, or that eventsor conditions "will", "would", "may", "could" or"should" occur. Although the Company believes theexpectations expressed in such forward-looking statements are based onreasonable assumptions, such statements are not guarantees of futureperformance and actual results may differ materially from those in theforward-looking statements. Factors that could cause the actualresults to differ materially from those in forward-looking statementsinclude results of exploration activities may not show quality andquantity necessary for further exploration or future exploitation ofminerals deposits, volatility of gold and silver prices, delays inmine development activities, future cash flow expectations andcontinued availability of capital and financing, permitting and otherapprovals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guaranteesof future performance and actual results or developments may differmaterially from those projected in the forward-looking statements.Forward-looking statements are based on the beliefs, estimates andopinions of the Company's management, contractors and consultantson the date the statements are made. Except as required by applicablesecurities laws, the Company undertakes no obligation to update theseforward-looking statements in the event that management's,contractor’s and consultants’ beliefs, estimates or opinions, orother factors, should change.
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