Blue Lagoon amends mining, milling deal with Nicola

Executive Summary

• Blue Lagoon Resources Inc. and Nicola Mining Inc. have executed an amended and restated mining‑and‑milling partnership agreement extending toll‑milling services for Dome Mountain mineralized material to a ten‑year term.
• The extension secures priority mill capacity for Dome Mountain, supporting the company’s transition from development to production and targeting first gold sales in Q4 2025.
• Blue Lagoon granted 3.5 million stock options to consultants and advisers (exercise price $0.57, five‑year term, immediate vesting).

Key Details

• Agreement Term: 10 years, amending the prior milling partnership between Blue Lagoon and Nicola Mining.
• Processing Commitment: Guarantees priority access for Dome Mountain mineralized material at Nicola’s fully permitted state‑of‑the‑art mill.
• Strategic Rationale: Provides a reliable, non‑dilutive cash‑flow pathway as Blue Lagoon moves toward production; aligns with Nicola’s equity stake in Blue Lagoon.
• Previous Support: Builds on Nicola’s $2 million unsecured line of credit announced 23 June 2025.
• Project Milestones Supporting Production Readiness:
• Commissioning of Dome Mountain water‑treatment plant.
• Commencement of underground blasting and mining operations.
• Production Outlook: First gold sales targeted for Q4 2025; internal cash flow to be reinvested into near‑mine and regional exploration beginning H1 2026.
• Option Grant: 3,500,000 stock options issued to consultants/advisers; exercise price $0.57 per share; five‑year term; vesting effective immediately.

Notable Quotes

“Securing this long‑term agreement with Nicola is a critical step in our transition from development to production… all without the company’s dilution.” – Rana Vig, President & CEO, Blue Lagoon Resources

“Our $2 million line of credit together with today’s milling agreement extension further demonstrates Nicola’s confidence in Blue Lagoon.” – Peter Espig, CEO, Nicola Mining