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‑mill capacity for Dome Mountain mineralized material to a ten‑year term.
• The extension secures priority mill access for Dome Mountain, supporting the company’s transition from development to production and enabling near‑term cash flow without equity dilution.
• Blue Lagoon also granted 3.5 million stock options to consultants/advisors at an exercise price of $0.57 per share, with immediate vesting and a five‑year term.

Key Details

• Agreement Term: 10 years (amended and restated mining & milling partnership).
• Parties: Blue Lagoon Resources Inc. (owner of Dome Mountain project) and Nicola Mining Inc. (mill operator and equity shareholder).
• Mill Capacity: Guarantees priority processing of Dome Mountain mineralized material at Nicola’s fully permitted state‑of‑the‑art mill.
• Strategic Rationale: Provides a reliable, non‑dilutive pathway for concentrate sales and cash flow as Blue Lagoon moves toward production (first gold sales targeted Q4 2025).
• Related Prior Arrangement: Builds on Nicola’s $2 million unsecured line of credit to Blue Lagoon announced 23 June 2025.
• Project Milestones Referenced: Commissioning of water‑treatment plant; commencement of underground blasting and mining operations at Dome Mountain.
• Option Grant: 3,500,000 stock options issued to consultants/advisors; exercise price $0.57 per share; five‑year term; vest 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