Blue Lagoon announces major steps toward production

Blue Lagoon Resources (CSE: BLLG; OTCQB: BLAGF) provided a corporate update highlighting significant progress at its Dome Mountain gold project as it prepares to enter production in a strong gold market.

Rana Vig, president and CEO, said: “We are fully funded, fully permitted, and now entering the final stages of mine readiness — with no short-term debt, multiple successful government inspections, and a water treatment plant that has now been completed. The confidence shown by our institutional investors, along with new strategic backing and the recently signed $2 million line of credit — not secured against our property — from Nicola Mining, gives us the flexibility to fund mining and development without delay. We're ready — and we’re moving quickly toward cash flow.”

The company carries no short-term debt and holds in-the-money warrants valued at over $3.6 million. Blue Lagoon has secured a $2 million line of credit from Nicola Mining, allowing it to draw funds in $500,000 tranches without encumbering its mineral property. While the company may choose not to use this facility, it retains the option to access capital if needed to support production ramp-up, seize opportunities, or handle unforeseen short-term needs, all without diluting existing shareholders.

To finalize mine preparation, the company successfully passed three separate government inspections. These inspections confirmed operational readiness in critical areas, including electrical systems, reclamation and geoscience, as well as ground control and health and safety protocols.

Yannis Tsitos, chair of the company’s mining committee. “These clean inspections are a testament to the strength of our team and the standard of work being done at Dome Mountain.”

Blue Lagoon has completed the construction and partial commissioning of its water treatment system, a vital component of the company’s environmental compliance plan under the Mines Act permit.

The company is advancing mine development activities in line with its permit, with the water treatment system now constructed and regulatory milestones achieved. As the MBBR activation phase progresses, environmental monitoring will ensure the system maintains full operational compliance.

This accomplishment signifies a major step toward production readiness and underscores Blue Lagoon’s dedication to responsible, permit-driven development. The company has scheduled the official mine opening for July 9, 2025.