Nicola Mining and Its Partner Ocean Partners Provide $10.0 Million in Financing to Blue Lagoon Resources Inc.
Partner financing secures mill feed, but core profitability and going concern risks remain unaddressed.
Nicola Mining Inc. (NIM) and Ocean Partners UK have committed a combined $10.0 million to Blue Lagoon Resources to fund the development of the Dome Mountain Gold and Silver Project. Nicola’s $5.0 million portion was executed through a private placement at $0.60 per share, resulting in the acquisition of 8,333,333 shares of Blue Lagoon. This transaction builds upon a prior $1.0 million strategic investment made by Nicola at $0.14 per share.
Ocean Partners contributed $5.0 million in this tranche, bringing their total commitment to $8.0 million. The proceeds are targeted toward mine development to ramp production toward 150-200 tonnes per day. The deal strengthens Nicola’s strategic relationship with Blue Lagoon and secures future mill feed for Nicola’s fully permitted Merritt Mill.
Nicola Mining Inc. (NIM) announced a $10.0 million financing structured as a partner-level transaction rather than a direct capital raise for the company, a move that is non-dilutive to Nicola shareholders. The agreement secures 150-200 t/d of mill feed from Blue Lagoon, a development strategically critical for the Merritt Mill’s revenue model. However, this arrangement does not directly improve Nicola’s bottom line or resolve the company's going concern risk.
The $0.60 per share investment price represents a ~10-15% discount to Nicola’s recent trading range, reflecting a risk-adjusted valuation for a junior partner asset. The market has already priced in the partnership and Nasdaq listing, with the stock having declined ~48% from its February 2026 peak. This release is expected and telegraphed.
Nicola Mining Inc. (NIM) operates the Merritt Mill, a fully permitted gold and silver milling facility in British Columbia that is transitioning from toll milling to processing proprietary and partner feed. The company has secured a long-term milling agreement through the Blue Lagoon Partnership, which guarantees priority access to Dome Mountain feed through 2036.
In exploration and development, Nicola Mining holds a 75% economic interest in the Dominion Creek Gold Project, where a 10,000-tonne bulk sample is planned for July 2026. The company also controls the New Craigmont Copper Project, a 10,800-hectare land package adjacent to Highland Valley Copper focused on porphyry-skarn systems. Additionally, the Treasure Mountain Silver Project, a fully permitted mine currently in care and maintenance, is scheduled to undergo a drilling program in 2026 to test vein continuity.