Blue Lagoon Secures 10-Year Milling Agreement with Nicola Mining for Dome Mountain Gold Project
Blue Lagoon Resources has extended its milling partnership with Nicola Mining to 10 years, ensuring long-term processing capacity for its Dome Mountain Gold Project and accelerating the company's transition to production.
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 strengthens the existing relationship between the two companies, building on Nicola's previously announced $2 million unsecured line of credit to Blue Lagoon on June 23, 2025. As both a mill operator and equity shareholder in Blue Lagoon, Nicola Mining demonstrates strategic alignment with Blue Lagoon's success through this long-term commitment. The agreement 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 significance of this agreement, stating that securing the long-term partnership 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, enabling the company 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 to make strategic investments to support further growth.
The amended agreement builds on recent milestones at Dome Mountain, including the commissioning of its 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 arrangement provides operational certainty for Blue Lagoon as it advances toward production, reducing execution risk and ensuring consistent processing capacity for mineralized material from the Dome Mountain project. The partnership represents a significant step in the company's path to becoming a cash-flowing gold producer in British Columbia's established mining jurisdiction. Additional information about the companies can be found at https://www.newmediawire.com.