Blue Lagoon makes 1st sale of Au, Ag to Ocean Partners

Executive Summary

• Blue Lagoon Resources Inc. has made its first sale of gold and silver from the Dome Mountain project to Ocean Partners U.K. Ltd., marking a transition from a prerevenue to a revenue-generating mining company.
• The company expects to receive $970,000 as an advance on the first shipment of approximately 1,000 tonnes of mineralized material delivered to milling partner Nicola Mining Inc.
• Underground development, production, and shipments are scheduled to resume in the first week of January following mill maintenance, with final settlement subject to customary adjustments and assays.

Key Details

• Transaction Value: Expected receipt of $970,000 from Ocean Partners U.K. Ltd.
• Material Shipped: Approximately 1,000 tonnes of mineralized material from Dome Mountain delivered to Nicola Mining Inc. for processing.
• Settlement Terms: The $970,000 is an advance; final settlement is expected after processing and is subject to customary adjustments, including final assays and prevailing metal prices.
• Operational Status: Processing was delayed due to scheduled mill maintenance. Underground development, production, and shipments are expected to resume in the first week of January.
• Future Grades: Further disclosure regarding the grades of the initial shipment will be provided following processing by Nicola.
• Strategic Milestone: The company views this as a significant inflection point, joining a select group of junior mining companies advancing from development into production and sales.
• Equity Grants: The company granted an aggregate of three million restricted share units (RSUs) and 200,000 stock options to directors, officers, management, and consultants.
  • Vesting: Immediate upon grant.
  • Option Exercise Price: 66 cents per share.
  • Option Expiration: Five years from issuance.
  • Approval: Subject to approval by the Canadian Securities Exchange.
• Project Context: Dome Mountain is a 100%-owned gold project in British Columbia. A full mining permit was granted in February 2025. The company plans to reinvest internally generated cash flow into near-mine and regional exploration starting in the first half of 2026.
• Risk Disclosure: Production decision was not based on a feasibility study but on existing infrastructure, past bulk sampling, and established mineral resource, carrying increased uncertainty and risk.

Notable Quotes

• "This sale marks a significant milestone for Blue Lagoon. The company is now focused on continued execution as we advance on development and production activities, increase throughput and work toward consistent, steady-state operations," said Rana Vig, president and chief executive officer.