Blue Lagoon secures $2M line of credit from Nicola Mining

Move enhances company’s financial flexibility ahead of production Blue Lagoon Resources (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) has secured a $2 million […]
Site of the Dome Mountain gold project near Smithers, B.C. Credit: Blue Lagoon Resources

Move enhances company’s financial flexibility ahead of production

Blue Lagoon Resources (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) has secured a $2 million line of credit from its toll milling partner, Nicola Mining, without pledging any of its mineral property or physical assets as security. This loan maximizes operational flexibility by eliminating the need for project collateralization, highlighting Nicola’s confidence in the Dome Mountain gold project and its imminent production plans.

Rana Vig, president and CEO of Blue Lagoon, said: “We’re extremely pleased to have the continued support of Nicola Mining, not only as our toll milling partner but also as a continued financial backer. This line of credit adds an extra layer of security to our already strong balance sheet and gives us added flexibility as we finalize preparations for gold production this summer. It's a clear sign that sophisticated investors recognize the value of Dome Mountain and its cash flow potential.”

Blue Lagoon recently completed financing, fully subscribed by long-term existing shareholders like Crescat Capital and Phoenix Gold Fund, along with new strategic investors. The company has positioned itself strongly for the final phase of development by remaining fully funded, carrying no short-term debt, and holding over $3.6 million in in-the-money warrants.

Though the company may not need to draw on this facility, it ensures capital availability to support the production ramp-up, seize opportunities, or address any unforeseen short-term needs. This approach avoids causing further dilution to existing shareholders, providing a vital financial backstop.

Peter Espig, president and CEO of Nicola Mining, commented: “We’ve worked closely with the Blue Lagoon team for some time and continue to be impressed by their methodical and disciplined approach. Successfully navigating B.C.’s rigorous permitting process, while also building a strong, trust-based relationship with the Lake Babine Nation, speaks volumes about their leadership. We are pleased to provide this credit facility and look forward to supporting their transition to gold and silver production.”

In February 2025, the government of British Columbia granted Blue Lagoon a full mining permit. Blue Lagoon now focuses on completing the remaining preparatory activities and tasks to ensure safe gold production.

More information is posted on www.BlueLagoonResources.com.

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